Is It Worth Suing Someone Who Has No Money?

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Is It Worth Suing Someone Who Has No Money

Obtaining compensation for a personal injury is the very holy grail behind filing a lawsuit or a claim. Any action from someone who causes you a personal injury gives you the legal right to claim damages and get justice after you’ve been wronged. You may demand damages to compensate for the injury sustained and the loss you’ve experienced. They may also cover additional costs as a result of an impairment. 

You have ample space to choose the kind of remedy you wish to seek and the legal provisions backing your claim. 

However, the very questions that you need to ask are: 

  • Can I afford the costs of a possibly lengthy lawsuit? 
  • Do I have enough financial resources to arrange my life during my case?
  • Does the other party have enough money, assets, or other resources to pay me the money I’m holding them liable for? 

If you answered yes, you should consider filing a counter-lawsuit against the other party and hiring a personal injury attorney. However, claims or litigation can be robust, and obtaining a favorable order from the court or the settlement you deserve is not a guarantee.

But what happens when the other side has no money? Here, we will discuss if it is even worth suing someone with no money.

The other side has no money, should I file a lawsuit?

Potential plaintiffs tend to back away when they realize that the defendant party is down-and-out of money. It would merely mean that the plaintiff would not extract any money from the defendant and that his losses would go unattended. 

However, this is not always the case. Even if the other side seemingly appears empty-handed, plaintiffs can still opt for many remedies to draw out monies from defendants. 

These remedies are provided under law and granted by courts after establishing the defendant’s inability to pay. Hence, plaintiffs should proceed with their recovery from lawsuits or claims.

Placing levies or liens on properties

Assuming that the other person does not have any liquid money to offer, the court can administer his properties to repay the amounts they owe. 

You can ask the court to place a levy or lien on the defendant’s properties. This lien establishes the claimant’s right to any proceeds, partially or in full, generated through the property’s sale.

Garnishing wages

Many times, individuals held liable to make payments may not own any properties at all that could be used to draw any finances out of them. In this case, things may get difficult here for you, except when you realize that most people have a regular income source. 

If you are in dire need of compensation, you can request the court to garnish the defendant’s wages. Additionally, you can declare that a certain percentage of their future income shall go directly to you.

Judgment proof people

In the worst-case scenarios, a person held liable may not even have any income source. How can you go about it in such a case? 

Individuals who do not have any money, trivial properties, or even meager predictable incomes are known as “judgment proof.” No order or direction from the court may seem to work against them simply because they don’t have any pockets to empty at all. 

What can you do? There are ways to get around money-less people.

Payments Made Out of Insurance

Whenever you sue a person for damages they caused you, their insurance almost always has a significant role to play. From cases involving car accidents to negligent conduct, the defendant declared liable to pay damages or compensation can shift the burden over to their insurance company. 

In fact, Washington State mandatorily requires every person to hold insurance. Through this law, anyone with insurance can be brought to court to make good for their losses. 

Moreover, in cases of car accidents, your own insurance company may be able to pay for the damage.

Future income

After exhausting all remedies to cover the damage instantly, you can also apply to the court to direct the defendant to pay them whenever he receives money in the future. 

This action works on the view that a person may not necessarily remain judgment-proof all their life. The court can impose upon them an obligation to pay any amounts they owe you whenever the defendant runs into money. In certain states, these orders may have to be renewed at intervals to extend these periods.

Last thoughts

All of the above methods of drawing money out of the defendant party can help you make up for your losses. The decision to file a lawsuit and use any of these modes still wholly depends upon your circumstances and the extent to which you can afford to be involved in a legal battle. 

To keep these costs low, it would be best if you act diligently before attempting to sue a person who apparently seems to have no money. An in-depth search for their financial position, monetary sources, and hidden assets may be ideal. 

Otherwise, there is absolutely no point in incurring an expensive case and time in litigation when you will get no satisfactory return in the foreseeable future. Try to recover your due share of compensation and damages once you know the odds and the defendant’s circumstances are in your favor. 

If you have a pending personal injury lawsuit and have cash flow issues, consider financing your lawsuit or claim with a legitimate settlement funding company. 

Reliable legal funding solutions provide cash so you can take care of your living expenses while you wait for your case to settle. A lawsuit advance may even help you pursue your case more robustly to seek adequate coverage for your injuries.

Apply for a lawsuit loan today.

At Baker Street Funding, we give you the inside scoop on pre-settlement funding by covering a variety of ... financing and legal topics to help you made the best financial decision for you and for your case. Our experts break down complex ideas in a way that's easy to understand so you can stay informed on current trends as well as tips and fact checked information by the CEO and founder, Daniel Digiaimo. Furthermore, Despite its name, consumer legal funding is not a loan. If you don't win your case, no payment needs to be made back. To avoid confusion and simplify matters on, we'll use the word "loan" throughout this article.

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