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What If Someone Sues You and You Have No Money?

Many people filing lawsuits seek monetary compensation for their losses. This can create issues when the defendant, or the person against whom the lawsuit is filed, lacks financial resources. Our clients want to know, What happens when someone sues you and you have no money?

After all, the court cannot force someone to hand over money they do not have. Nevertheless, the law offers other ways to recover financial compensation for plaintiffs or the person filing the lawsuit. In some cases, a defendant’s insurance company may cover the losses for which they are liable.

Alternatively, a plaintiff can secure a judgment against the defendant and collect their judgment in other ways, such as:

  • Wage garnishment,
  • Levying business assets,
  • Repayment plans, or
  • Repossessing personal property.

Our team provides more detail on these debt collection methods in the article below. Contact Injury Wallet today to talk to a member of our team about your case.

What If Someone Sues You And You Have No Money?[hide]

What Happens When Someone Sues You and You Have No Money?

A plaintiff can still recover monetary compensation even if the defendant does not possess any tangible assets as long as they obtain a judgment. With a judgment, they can garnish the defendant’s wages.

Wage garnishment means the court deducts a portion of the defendant’s wages to pay back their financial obligation. The plaintiff cannot garnish your wages if you earn less than minimum wage. 

Another option for the plaintiff is to access the funds in the defendant’s checking or savings account to satisfy their financial obligations. Typically, the plaintiff cannot garnish retirement savings accounts.

With a valid judgment, a plaintiff can record a lien on the defendant’s property until the defendant pays the debt. Some real property is exempt from judgment liens. When the plaintiff has a lien on the property, and the defendant sells it, the plaintiff receives the sale proceeds to satisfy their judgment. The defendant gets whatever is left after the plaintiff satisfies their judgment.

Alternatively, you can set up a payment plan to satisfy your debt obligation over time if you cannot pay it all at once. 

What Happens If You Lose a Lawsuit and Can’t Pay?

If you lose your case and cannot pay your judgment, creditors can repossess certain assets and sell them to recover the money they are owed. To legally take possession of your property, they must comply with repossession laws, which vary from state to state.

You can also contact the plaintiff and attempt to reach a post-judgment settlement agreement. Most plaintiffs would prefer to receive a small amount of money instead of none. If you can guarantee the payment of a smaller amount immediately, they may agree to forgive the rest of your debt.

What Are My Options If I Cannot Afford to File a Lawsuit?

Many injured parties hesitate to file a lawsuit because they fear exorbitant fees. The cost of filing a case and the slow court process make it difficult for plaintiffs to stay afloat and pay their legal costs.

Injury Wallet connects clients with personal injury financing to help pay for necessities while their case goes through the legal system. Only some cases are eligible for a lawsuit loan. Reach out to Injury Wallet today so we can evaluate your claim.

How Can Injury Wallet Help?

The lawsuit process is complicated on its own. At Injury Wallet, we can help find a lawsuit loan lender for you to help reduce your financial burden while waiting for a settlement.

Contact the experienced professionals at Injury Wallet to begin your lawsuit loan process today.

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