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.
Contingency means that your lawyer will agree to take on your case and represent you without requiring any payment upfront, allowing you to file a case with no money. Your lawyer will only receive payment for their services if and when you reach a positive resolution and some form of compensation in your case.
You need to answer three fundamental -- and fairly obvious -- questions as part of deciding whether it's worthwhile to bring a lawsuit to court: Do I have a good case? Am I comfortable with the idea of a compromise settlement or going to mediation? Assuming a lawsuit is my best or only option, can I collect if I win?
If you are being sued, you are the defendant. Losing your case may mean having to pay for the injuries and damage you caused. The court can impose a money judgment. If you were reckless or acted intentionally, you may be subject to additional costs as punishment for your dangerous behavior.
A long time ago, it was legal for people to go to jail over unpaid debts. Fortunately, debtors' prisons were outlawed by Congress in 1833. As a result, you can't go to jail for owing unpaid debts anymore.
If you're sued, you can choose to do nothing. This means that you do not file any response by the deadline. The Plaintiff then can ask the judge to decide the case without your input. This is called a default or a default judgment.
There are several reasons why it may be better to settle a case rather than going to trial. Trials are expensive. Trials are stressful. Liability and damages are difficult to determine when your case is decided by a judge or jury.
The Average Cost of a Lawsuit
On average, a lawsuit costs approximately $10,000 for a simple suit. However, numerous factors can influence the cost of your lawsuit.
Before filing a lawsuit, prospective litigants should consider what they want from a case. Civil courts can only give you money or return property. A judgment cannot fix an underlying family problem or neighborhood feud. Lawsuits cost time and money, even if you get court costs awarded with a judgment in your favor.
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.
You don't have to have a minimum amount of monetary damages in order to go to court. Small claims court by definition will have a maximum amount of potential damages, but if you, say, promise a kid 50 cents if he brings you your mail, and he takes off with your two quarters, you can theoretically sue to get it back.
Self-help legal services can assist you with filing paperwork, sure. But they cannot give you legal advice and won't be able to tell you about future deadlines. If you can't keep track of these things yourself, you're better off having an attorney and their paralegals handle your case.
Despite your financial constraints, a court ruling against you would still result in a legal obligation to pay the determined amount. This could lead to wage garnishment, where a part of your future income is deducted to satisfy the debt, or even asset seizure, including bank account freezes.
You can take the issue to small claims court and pursue legal action if it falls between the minimum and maximum money thresholds under court rules. You may want to get legal advice from an attorney with experience in collections matters. They may be able to help you decide if you have a civil case worth pursuing.
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.
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.
Typically, debt collectors will only pursue legal action when the amount owed is in excess of $5,000, but they can sue for less. “If they do sue, you need to show up at court,” says Lewis-Parks.
Attorney fees can make up a portion of these costs. Additionally, court fees and other legal expenses such as research and document preparation can quickly add up. The complexity of the legal system also contributes to high lawsuit costs.
First, you must ask yourself if you have a good case. Second, you should ask whether you'd be satisfied with a settlement or going to dispute resolution if you file a lawsuit. Finally, assuming you win your lawsuit, you need to ask yourself whether you'll be able to collect any form of judgment.
Most civil cases are settled out of court because both parties realize that it is the most efficient way to resolve the dispute. Out-of-court settlements also avoid the risk of an unfavorable verdict from a jury or judge and reputational damage.
The courts and almost all attorneys strongly encourage settlement. In fact, most civil cases are settled. Even criminal cases are settled, although they call those settlements “plea bargains.”
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.
In certain states, a debtor who fails to obey a court order to make an assigned payment or to appear at a hearing can deemed to be in civil contempt of court. As a result, a court may issue a warrant for the arrest of the debtor who has not followed court orders.
Negotiate a resolution with the plaintiff
At any time during the case, you can talk to the plaintiff and try to resolve the dispute. Just keep an eye on your twenty days. Even if you are negotiating, your clock is still ticking.