Contrary to what you may think, it’s not a wasted effort to sue someone with no money. Whenever someone violates your rights or causes you harm that leads to an injury or loss, the law provides you with the grounds to sue the responsible party and demand compensation, whether they have money or not. Whether it is through a car accident, dog bite, or any other accident, if you’ve sustained a personal injury, you can file a lawsuit to demand compensation for your expenses or pain and suffering.
The lawsuit judgment doesn’t depend on whether a person can pay or not. It depends on whether they owe a certain debt, caused harm, or are liable for any loss incurred to the injured party. Even if the responsible person has no money, if you win the lawsuit, they still owe you the amount decided upon by the court.
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The Ability or Inability to Pay Doesn’t Affect the Outcome of the Judgment
The defendant’s inability to pay doesn’t affect your judgment outcome in court, although it can complicate the process. The jury will consider all the facts and evidence to decide if the defendant is liable for your incurred damages. Charges will still be made against the responsible party whether they can pay or not because these are moral liability cases.
The court may grant you the authority to seize some of their assets after the judgment, such as:
- Real property investment accounts
- Bank accounts
- Company income
- Other personal assets
It is important to note that a claim can be lost but not the judgment.
To apply for free, call (877) 735-0016
Challenges Faced When You Sue Someone with No Money
It is crucial to be aware of the risks when you sue someone with no money. You may be intimidated into dropping the charges against that person, or you may be offered a payment to take a settlement without going through all the court proceedings, possibly being compensated less than you may be owed.
Getting the compensation you are owed from someone who has no money may not be easy for the following three reasons:
- They can apply for a declaration of exempt income and assets: You can’t touch their salaries or properties, thus rendering you unable to claim them for debt settlement.
- They can file for bankruptcy: This means that they cannot pay any outstanding debt, thus diminishing your chances of receiving any compensation.
- They could claim that they are judgment-proof: This means that they have no money or available assets to settle your judgment claim. Therefore, they can be exempt from a collection before the court judgment.
Your Bills Can’t Wait
When you get injured, you need ample time to focus on your treatment and recovery. However, this might be challenging when the bills are piling up. Court proceedings can take time, and it takes even longer to get your compensation if you sue someone who doesn’t have money.
These people rarely have assets that can be seized. Therefore, you may not be able to collect the money even after winning the case, or it may take you a long time to do so.
High Rise Financial provides you with pre-settlement funding that keeps you financially afloat until your case is settled and you are compensated. Contrary to a lawsuit loan, pre-settlement funding from High Rise Financial comes with no risks. You don’t pay a single cent if you lose your case.
How to Collect Payment After a Judgment
You will be allowed to use different collection techniques to collect the compensation amount awarded to you if the court decides in your favor. If the other person is not willing to make payment promptly and voluntary, you can apply the following methods:
Placing a Levy on Property
You can decide to place a levy on the responsible party’s investment accounts, vehicles, bank accounts, or real estate. After recording your judgment with the local recorder’s office, you will receive compensation after the property is sold. Some assets, such as those that the other party needs for work, may be exempted from levies.
Business Income or Assets
Some of the items a business owns can be seized to settle a judgment. Similarly, some of the income generated from the business can be channeled towards your compensation settlement.
If the other party cannot pay you in full at once, you have the right to deduct a monthly payment from their wages. There is a wide variation in the percentage of wages you can collect. However, if the other party earns low wages, is unemployed, or is living on social security, you cannot take a portion of their income.
Future Income or Assets
The fact that the other party has no income or assets currently doesn’t mean that they never will. The judgment remains collectible until the total amount is settled. Even though the judgment has an expiration date, you can always renew it to get a collection time extension.
Getting a Lien on Their Assets
This is where a court grants you a right on the other party’s property. If the individual is unable to pay, you may eventually have full rights to the property you have a lien on.
Handing Over the Matter to a Debt Collector
A reputable debt collector can help collect the payment when the other party is unable to pay. The debt collector will handle everything, and you will only pay them a small fee after they retrieve your payment.
Do You Need Financial Support as You Wait for Your Case Settlement?
Filing a lawsuit and going through the court proceedings takes a lot of time. It can take even longer when you sue someone with no money. However, during this time, you may need money to pay your living expenses and medical bills.
High Rise Financial offers you pre-settlement funding to pay your bills during your court case. If you or your loved one need money, contact us today for help.
Call or text (877) 735-0016 or fill out our form to apply today for free.