If unsecured credit has been extended to a judgment-proof debtor,the creditor is unlikely to collect the debt.

Question

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A judgment-proof debtor has no assets or income that can be used to satisfy a debt, so even if credit is extended to them, the creditor is unlikely to collect the debt if it remains unpaid. Furthermore, unsecured credit does not provide any collateral or security for the creditor to seize if the debtor is unable to repay the debt.

If Unsecured Credit Has Been Extended to a Judgment-Proof Debtor,the