What happens if you get sued and have no money or assets?

What happens if you get sued and have no money or assets?

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, you still owe that sum of money to that person or company.

What can a judgment creditor take?

When a judgment has been entered against you, creditors can take some of your income or your “assets” to pay back the money you owe. Assets are things you own, like a bank account, a car, or jewelry. But, you can keep some of your income and assets safe from most creditors.

What assets are protected from creditors in Florida?

The key assets that are protected from creditors in Florida include:

  • A homestead, with some acreage limitations.
  • The wages of someone who qualifies as head of household.
  • Annuities.
  • Life Insurance.
  • Retirement Accounts.
  • Tenants by entireties property when the judgment is separate.

Can creditors take your house in Florida?

Can creditors Take Your House in Florida? No. In Florida, up to 160 acres of contiguous property in a county, and up to a 1/2 acre in a city, is completely protected from civil judgment creditors.

Can a judgment debtor take Your House in Florida?

Discovery in aid of execution in Florida refers to the legal process by which a judgment debtor is able to find (discover) debtor assets which may be subject to collection of a money judgment. Can creditors Take Your House in Florida? No.

Can a judgment debtor seize a property from you?

Creditors who have won a judgment against a debtor may soon find that seizing assets or properties after a lawsuit is not as straightforward as it may seem. The judgment debtor examination generally yields a trove of assets and properties to which a creditor is entitled.

What happens if a debtor is judgment proof?

Creditors can’t obtain money or property from a debtor who is judgment proof and a judgment-proof debtor might not need to file for bankruptcy. If you don’t have funds or property that a creditor can reach, a creditor can’t collect its debt. You’re “judgment proof.”

How are creditors able to collect in Florida?

Florida judgment collection laws enable creditors to collect money damages a court has awarded in a court judgment. The outcome of most civil litigation is a money judgment against the losing party (judgment debtor) in favor of the prevailing party (judgment creditor) for an amount of money damages plus interest.

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