What happens if someone sues you and you do not have any money or assets?

Answer 1

The defendant(s) would be considered to be "judgment proof" (legal term execution proof). This means the person has not property that can be seized nor wages or bank account(s) that can be garnished by creditors for repayment of the debt. It is not uncommon for a lawsuit defendant to be "judgment proof", the creditor can still record the judgment in hopes that the debtor will not always remain in his present economic status.

Answer 2

Yes. But even if you win a huge judgment you might not collect a nickel if the person has no assets. At best, if the person has a job, you could garnish wages or just let the judgment sit in the lien docket until the person wants to acquire some real estate then you got something.

Answer 3

Yes. As long as the plaintiff has a valid claim against you, you can be sued and a judgment against you obtained. People with no assets are often referred as judgment-proof. This means that even if they are sued and a judgment against them is obtained, the plaintiff will not be able to seize any assets. But if you are working, you might have your wages garnished under the judgment. If a judgment against you is obtained it will be on the record for a certain number of years, depending on the state's laws. If you ever buy a house or come into money at a later date, the judgment will be there and you may have to pay it before buying that house or the plaintiff might find out about your new asset and seize it. Also, if you are not working at the time the lawsuit would be filed against you, you might get a job in the future and then your wages can be garnished. The determining factor about being sued is not whether you have money. It is whether the plaintiff has a valid claim.

Answer 4

If the defendant loses the case, the Court could order any future earnings be attached. Your heirs could even lose any life insurance payments after your death. In any event, you will have to prove you do indeed have no property (and didn't just recently sell or give away property), assets, or income. Also that you aren't keeping yourself deliberately unemployed or underemployed (meaning you could be making more money than you are).

Answer 5

If you are being sued and have no assets the court may let you make payments. Speak to the judge or court officer to find out how long you have to make payments.