What Happens When You Sue Someone With No Money?

If you’ve been hurt due to someone else’s negligent or careless actions, you have the right to file an injury claim with their insurance company or personal injury lawsuit against them to seek compensation. But what happens if the responsible party doesn’t have the money to pay your financial compensation or cover your damages and losses?

Essentially, you might think suing someone with no money is futile, but that’s not the case. The law protects your rights and allows you to seek compensation if someone causes you harm or loss, regardless of their financial status. Whether it’s a car accident, a dog bite, or any other incident resulting in personal injury, you have the right to file a lawsuit or legal claim to seek compensation for your expenses and suffering.

Furthermore, a lawsuit judgment is determined by the defendant’s liability, not their ability to pay. If the court finds the defendant responsible, they are legally required to compensate you, even if they currently lack the funds. Winning the lawsuit means the defendant owes you the amount decided by the court, which you can pursue through various legal avenues. While awaiting a court verdict or financial compensation, you can apply for a pre-settlement loan at High Rise Financial.

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 legal process. The jury will consider all the facts and evidence to decide if the defendant is liable for your medical expenses and 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

To apply for free, call (877) 735-0016

Challenges Faced When You Sue Someone with No Money

However, 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. As such, it will diminish 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 collection before the court’s 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 fair settlement or 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. In such a situation, getting affordable lawsuit settlement loans may be right for you. 

High Rise Financial provides you with pre-settlement funding that keeps you financially afloat until your case is settled and you are compensated. Unlike a traditional loan or personal loan, pre-settlement funding from High Rise Financial is non-recourse and comes with no risks. You don’t pay back the lawsuit cash advance if you lose your case. Also, there are no credit checks or credit scores review needed for you to be approved for the non-recourse funding.

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, personal property, or real estate. After recording your judgment with the local recorder’s office, you will receive compensation after the personal 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.

Garnishing Wages

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.

Important Consideration When You Sue Someone with No Money

Taking legal action against someone who has caused you harm is your right, but it can be complicated when the responsible party lacks the financial resources to pay. Here are some essential aspects to consider when pursuing a lawsuit under such circumstances.

Working with a Personal Injury Lawyer

Having a personal injury lawyer can help you navigate the complexities of your lawsuit. A knowledgeable lawyer can assist in securing settlement funds or personal injury loans and negotiating with the liable parties to ensure you receive fair compensation.

Insurance Policy Considerations

An essential factor to consider is whether the responsible party has an insurance policy that can cover the damages. If they do, the insurance policy can significantly impact the settlement amount and speed up the compensation process.

The Role of Pre-Settlement Funding Companies

When facing financial distress during a lawsuit, lawsuit loan companies can provide you with a cash advance. These companies offer pre-settlement legal funding to help cover expenses while you wait for your settlement or court verdict. If you are approved, your cash advance will be available within 1-2 business days.

If you need immediate financial assistance, lawsuit funding can provide a temporary solution. There are usually no filing fees or upfront costs. However, it’s essential to be aware of any other funding fees associated with such pre-settlement loans.

Managing Financial Obligations

If you win your lawsuit but the responsible party has no money, they are still legally required to pay you. In the meantime, legal funding or pre-settlement lawsuit loans can help you manage expenses like mortgage payments and other financial obligations.

Appeals and Default Judgment

If you’re dissatisfied with the judgment or if the responsible party refuses to pay, you can file an appeal. In some cases, a default judgment can be issued against the negligent party, ensuring you receive the compensation owed.

Dealing with Debt Collectors and Protecting Personal Assets

Debt collectors may be involved if the responsible party defaults on payment. It’s crucial to protect your personal assets and bank accounts during this period. Working closely with your lawyer can help safeguard your interests.

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Final Thoughts

Suing someone with no money might seem daunting, but the law is on your side. With the right legal support and financial planning, you can pursue your personal injury claims or lawsuit and secure the compensation you deserve, regardless of the defendant’s financial situation.

Do You Need Financial Support as You Wait for Your Case Settlement?

Filing a lawsuit and going through the claims court proceedings takes a long period of time. It can take even longer when you sue someone with no money. However, during this time, you may be facing financial hardships and 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.

Call or text (877) 735-0016 or fill out our form to apply today for free.