What Happens If You Sue Someone With No Money? Understanding Your Rights and Options

If you’ve been harmed due to someone’s negligence, abuse, or misconduct, you have the legal right to seek compensation for your injuries.

Whether you're dealing with medical bills, lost wages, or emotional distress, a lawsuit can help you recover what you're owed. But what happens when the person you're suing has no money? Does that mean you walk away with nothing? Not necessarily.

In this blog, we’ll explore your legal options and explain how pre-settlement cash advances from PrimeCare Network can help you stay financially afloat while your case is pending.

A Defendant’s Financial Status Doesn’t Impact Your Case Verdict

Whether or not the defendant has money doesn’t affect the court’s decision. The judge or jury will determine liability based on the facts and evidence. Even if the person can’t pay immediately, you can still be awarded a judgment in your favor. The challenge comes in collecting the money once the judgment is granted.

Insurance May Cover the Damages

Often, it's not the individual but their insurance company that pays out the claim. For example:

• Auto accidents: Covered by car insurance.

• Injuries on someone’s property: Handled by homeowners or renters insurance.

• Workplace incidents: May be covered by business liability insurance.

So even if the person you’re suing has no personal funds, their insurance may fully or partially cover your compensation.

Why Lawsuits Are Still Necessary

Insurance companies don’t always agree to a payout. If there's a dispute about fault or the amount owed, a lawsuit may be necessary to obtain a fair judgment. A favorable court ruling can force the insurer to pay what you're rightfully due.

Could Others Be Liable?

In some cases, someone else may be legally responsible:

• Minors: Parents can be held liable.

• Employees: Employers may be responsible if the incident happened on the job.

It’s important to explore all avenues of accountability in your case.

How to Recover Compensation from Someone with No Money

Even if the person is currently broke (often referred to as "judgment-proof"), a court judgment still gives you legal leverage:

Seizing Assets

Courts can authorize the seizure of bank accounts, vehicles, or personal property to satisfy the judgment.

Wage Garnishment

If the defendant gets a job later, you can have their wages garnished until your judgment is paid.

Future Income or Property Sales

A lien can be placed on their property, meaning if they sell it, your judgment must be satisfied first.

Default Judgments & Repayment Plans

If the defendant fails to respond to the lawsuit, you can win by default and begin collection proceedings. In some cases, they may agree to a repayment plan to avoid further legal action, paying in monthly installments with interest.

Keep Your Judgment Alive

A judgment doesn’t last forever unless renewed. States allow you to extend the judgment periodically, which ensures you can collect if the defendant acquires money later. This cost can often be added to the amount they owe you.

Should You Sue Someone with No Money?

Yes—especially if you’ve suffered serious harm. While they may not have money now, that could change. Some people appear broke but have hidden assets or income sources. A judgment gives you a legal claim on any future financial gain.

Need Cash While Waiting for Your Case to Settle?

Legal cases can drag on for months or even years. If you're facing overdue bills or can’t afford medical treatment while your claim is pending, PrimeCare Network can help.

We offer pre-settlement cash advances so you can take care of immediate expenses without waiting for the case to resolve.

Call 888-474-8473 or Apply Now

Disclaimer:
Oasis provides pre-settlement funding, also known as consumer litigation funding, to its customers through different products depending on their state of residence or cause of action. Many consumers will be provided pre-settlement funding in the form of a purchase agreement, which assigns a portion of the pending proceeds from their legal claim. Other consumers, such as those in SC and CO, will be offered funding in the form of a pre-settlement loan, sometimes referred to as a lawsuit loan. These transactions have important differences. Therefore, consumers should carefully review and be aware of the type of transaction that is offered to them by any funding company.