Table of Contents
Can you sue someone if you have no money?
Contrary to belief, it is possible to sue someone who has no money. This is because the decision of the courts does not depend on the size of your debtor’s pocket – if they are guilty of the charge, then they are legally obligated to pay you. Getting your money out of someone with no money can be harder than you think.
Is it illegal to sell someones debt?
Debts regulated by the Consumer Credit Act, can be sold on or placed with another company any time after you stop paying, this is a normal part of the debt collection process. This applies to most common types of consumer debt such as a loans, overdrafts, credit cards and store cards, hire purchase and catalogues.
What happens if someone cant pay a lawsuit?
According to attorney Gil Siberman, in most legal jurisdictions in the United States a judgment you cannot pay simply turns into another form of debt. As such, it will typically get turned over to a collection agency which will do what it can to be reimbursed for the debt.
Can a creditor threaten to sue you?
In a debt collection attempt, a creditor may threaten to bring a lawsuit, or sue, in order to force payment on a delinquent debt. However, creditor harassment, as it is defined by the Fair Debt Collection Practices Act (FDCPA), is illegal and punishable in a court of law.
What happens if you sue a company with no money?
The lawsuit is not based on whether you can pay—it is based on whether you owe the specific debt amount to that particular plaintiff. Even if you have no money, the court can decide: the creditor has won the lawsuit, and, you still owe that sum of money to that person or company.
How long can creditors pursue a debt?
How Long Can a Debt Collector Pursue an Old Debt? Each state has a law referred to as a statute of limitations that spells out the time period during which a creditor or collector may sue borrowers to collect debts. In most states, they run between four and six years after the last payment was made on the debt.
What assets can be seized in a lawsuit?
Properties a creditor can seize include tangible assets, such as vehicles, houses, stocks, and company shares. They can also include future assets a debtor expects to receive such as commissions, insurance payouts, and royalties. The attorney questioning you will very likely discover these assets.