What Happens If Someone Sues You And You Don’t Have Money?

What happens if you sue someone and they don’t have money?

Unfortunately, there is no good answer—if someone has little income and few assets, they are effectively “judgment proof” and even if you win against them in court, you effectively lose: you spent the time and money to sue and receive nothing in return. Someone who has no assets now may have assets later.

How do you sue someone with no money?

If the person being sued doesn’t (or fails to) acknowledge the service of process, you can then use the situation to obtain a “default judgment” from the court against the person. But since that person has no money, it’ll only end up being “a strawman’s judgment.” You can sue and get a judgement against them.

What happens when a lawsuit is filed against you?

Before a person or a company to whom you owe money can win a judgment against you, they must first file a lawsuit in court. If you ignore the lawsuit, the court will enter an automatic judgment against you, known as a default judgment.

Is it worth it to sue someone?

Normally it is not worth suing someone over very small things because going to court is very expensive and can take a long time and if the issue isn’t that big then you might waste more time and money going to court than it’s worth.

What happens if you win a lawsuit and they can’t pay?

If you don’t pay what you owe right away, you will have to pay more. The creditor will get post-judgment interest on any part of the debt not paid back right away. If you don’t pay the creditor, they can take steps to collect the money from you. This is called enforcing the judgment.

What happens if someone sues you and you have no money?

A creditor or debt collector can win a lawsuit against you even if you are penniless. The lawsuit is not based on whether you can pay—it is based on whether you owe the specific debt amount to that particular plaintiff. Even if you have no money, the court can decide: the creditor has won the lawsuit and.