What happens if someone sues you but you don't own anything?

Asked by: Eulah Bauch  |  Last update: June 8, 2025
Score: 4.2/5 (6 votes)

If you truly have no assets and limited income, you might be considered "judgment proof." This means that even if the other party wins the lawsuit, they may not be able to collect any money from you.

What happens if someone sues me and I have no assets?

Some defendants might be considered “judgment proof” if they have no assets. Possible Outcomes and Future Collection: Judgments remain active for several years and could be renewed. Even if the defendant has no money now, the plaintiff might collect it in the future when financial circumstances change.

What happens if the person you sue has no money?

The California statute of limitations for filing a judgment is ten years. If the debtor cannot pay or complete payment within this time, you must renew the judgment. The judgment must continue to be renewed to ensure the debtor pays the full amount.

Can I be sued if I don't have anything?

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.

What is it called when someone sues you for no reason?

Frivolous lawsuits are typically outlandish claims or attempts to use the legal system for personal gain, not for seeking fair compensation for real damages.

What To Do If You Get Sued But You Don't Have The Money [Walkthrough]

18 related questions found

Can someone sue me without proof?

No evidence means that the Plaintiff has no evidence for at least one required element to support the claim, whether the claim has one element or two or more. if the Plaintiff cannot prove they have evidence for each element, the Judge grants the Motion for Summary Judgment.

Can someone sue me for no reason?

If someone has filed a frivolous lawsuit against you, meaning one without any legal merit or basis, you may be able to sue them for wrongful litigation. To do so, you must demonstrate that they knew their claims were baseless but proceeded with the lawsuit anyway.

What happens if you sue someone and lose?

If you lose, you could be required to pay all court costs and fees, including those of the other parties. Some states, like Nevada, are "loser pays" states, meaning the loser in a lawsuit pays all court costs. If you lose a personal injury claim, you will be out of pocket for your medical expenses and other costs.

Is it worth going to small claims court for $500?

Conclusion: Going to small claims court may be worth it for $500, but it will determine how you weigh your costs versus benefits. At a minimum, it is worth it to send a demand letter.

Who pays in a civil lawsuit?

The rule for attorneys' fees is that each side must pay their attorneys' fees unless a contract or statute allows an award of attorney fees. A losing party pays attorney fees only if the winner is specifically given the right to recover legal fees in a contract between the parties or through a state or federal law.

Can you go to jail for not paying someone who sued you?

While debt collectors can no longer have you jailed or threaten to have you arrested for not paying your debts, there are a few instances in which you can be incarcerated with debt as the underlying cause. For example, a debt collector can sue you and, if you fail to comply with court orders, you could get jail time.

What happens if you ignore someone suing you?

If you don't file an Answer, the plaintiff can file a “Motion for Default,” asking for an automatic win. The court usually grants the Motion for Default because you haven't officially acknowledged the lawsuit. The court enters a default judgment, essentially ruling in favor of the plaintiff without your participation.

Do you have to spend money to sue someone?

Court filing fees: It costs money to file your lawsuit with the court. The amount of these fees depends on the type of lawsuit, the cost of process servers, and so on. Discovery fees: Most civil lawsuits include a discovery process, and there are costs associated with this process.

Is it worth suing someone with no money?

You should still sue someone who has no money for a couple of reasons. First and foremost, you deserve justice after suffering injuries due to someone else's negligence. You also have options for collecting compensation after a favorable verdict, even if the person you are suing does not have much money.

Can you go to jail if a credit card company sues you?

A debt collector can't threaten to or have you arrested for an unpaid debt. If you're sued and you don't comply with a court order, though, you could be arrested.

How can a debt lawsuit be dismissed?

8 ways a credit card debt lawsuit can be dismissed
  1. Statute of limitations defense. ...
  2. Lack of standing to sue. ...
  3. Insufficient evidence of the debt. ...
  4. Procedural violations. ...
  5. Identity theft or fraud. ...
  6. Debt settlement.
  7. Debt validation.
  8. Bankruptcy filing.

What happens if you lose in small claims court and don't pay in the Philippines?

If you don't pay within the time limit given in the judgment, the other party can have your salary or other property seized by a bailiff. In this situation, the bailiff's fees will be added to the other amounts you have to pay.

Will a collection agency sue for $5000?

Unpaid, credit card balances between $5,000 to $10,000 increase the likelihood of legal action by creditors or collection agencies. While agencies typically pursue the full amount owed, debt buyers may accept reduced payments.

What kind of lawyer do I need to sue a bank?

A: To pursue legal action against a bank for causing financial injury, you should consider hiring an attorney with expertise in banking and financial services law, including securities law. Look for a lawyer who has experience in handling cases involving bank errors, unauthorized transactions, and financial disputes.

What happens if someone sues you and you have nothing?

If you truly have no assets and limited income, you might be considered "judgment proof." This means that even if the other party wins the lawsuit, they may not be able to collect any money from you. However, being judgment proof doesn't prevent the lawsuit from proceeding or a judgment from being entered against you.

How much does a lawyer cost to sue someone?

Hourly basis: A lawyer who works with you on an hourly basis will charge you for each hour of the time they give you. Hourly rates will vary depending on the layer and your case but can range anywhere from $199 to $295 per hour.

What happens if you sue an LLC with no money?

Suing an LLC with no assets is possible, but often unproductive financially. LLCs shield owners' personal assets, so winning may not yield payment. If you're wondering whether having no assets protects you from lawsuits against your LLC, it's important to understand the limitations.

Can someone sue me if I don't own anything?

A person without assets or only assets you can't take is called "judgment proof." Don't expect to get paid soon when suing someone who is judgment proof. You'll likely need to renew the judgment until the person recovers financially, finds a job, and accumulates attachable assets (more below). Example.

When someone sues you, what happens?

Generally, you'll either respond and defend yourself in court or do nothing. If you do nothing, the judge can decide the case without your input. You could also reach out to whoever is suing you and try to reach an agreement.

What do you call someone who sues a lot?

of or relating to litigation. excessively or readily inclined to litigate: a litigious person.