If the defendant doesn't pay, several actions can be taken: Wage Garnishment: A portion of the defendant's wages can be redirected to satisfy the debt. Bank Levies: Funds can be taken directly from the defendant's bank account.
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.
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.
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.
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.
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.
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?
Can I call the police if someone owes me money? You can, but they won't do anything about it. Debt collection is a civil matter. You'd need to sue in small claims court.
Some attorneys and law practices are willing to file lawsuits to recover unpaid attorney fees and unreimbursed out-of-pocket expenses.
Litigation can be long and expensive, and settlement helps save time and money. Risk mitigation. Parties may choose to settle to minimize the uncertainty of court proceedings. A settlement allows them greater control over the outcome and avoids the risks of a trial and unpredictable judgments.
If you're wondering about how to stop most frivolous lawsuits, you must contact an experienced attorney who can advise you on the best course of action to take. Very often, a wise option is to settle out of court by apologizing or offering a small compensation to resolve the issue even if you were not at fault.
However, refusing a settlement offer does extend the life of your claim and delays when you receive compensation. If you have pressing medical bills or other expenses, this is a factor to consider. You'll also need to invest more time and energy into your case, including providing more documentation of your damages.
The bottom line. While debt collectors may not automatically sue over a $3,000 credit card debt, they have the right to pursue legal action if they believe it's a viable option.
Here's the good news — you can't go to jail for credit card debt, and if a debt collector implies that you might end up in jail, they are breaking the law as established by the Fair Debt Collection Practices Act.
More frequently than most consumers probably realize. While precise statistics are difficult to come by, legal experts estimate that several million debt collection lawsuits get filed across the United States every single year.
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.
You cannot be arrested or sentenced to prison for not paying off debt such as student loans, credit cards, personal loans, car loans, home loans or medical bills. A debt collector can, however, file a lawsuit against you in state civil court to collect money that you owe.
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.
The Bible does not forbid lawsuits. In fact, our judicial system is based on Judeo-Christian principles. James Madison proposed the first 10 Amendments to the U.S. Constitution [Bill of Rights] including freedom of religion and the right to trial by jury in all civil cases in excess of $25.
After you file your lawsuit, you have to let the defendant know that you are suing them. Usually, the defendant knows about the case a long time before it starts. Hopefully you talked to the defendant and tried to settle the case before you filed.
The Judgment is Final, Even if Collection Takes Time
The defendant must pay their legal debt. If they can't pay immediately, legal mechanisms can help you collect later. This may involve payment plans or monitoring assets. Collecting from someone unable to pay requires patience.
Although it might be tempting to ignore a summons and complaint, ignoring a lawsuit does not make it go away. And it could result in the court awarding a money judgment against you by default. That can lead to your wages being garnished, your bank accounts attached, or your property being taken!
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.