In many cases, individuals experience insolvency before they file for bankruptcy. This means that they do not have the necessary assets to pay their creditors for the debs that they owe. Even if creditors take legal action against an insolvent party, their efforts would be futile because the defendant would not have the necessary assets to compensate their creditors.
An individual who is insolvent is deemed to be "judgment proof" because, even if a judgment is made, the defendant will not have the necessary resources to fulfill the conditions of the judgment. In general, an individual who is considered to be judgment proof has very few assets to their name and the property that they do posses is either worth very little, or it is exempt property.
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