What happens when someone is sued for millions, but they don't have the money and they can't pay?

Answer 1

The court sets up payment installment arrangements based on ability to pay. Like $10 per month.

Answer 2

Just because someone is being "sued for millions," it does not mean he/she will have to pay anything. Remember the lawsuit a few weeks ago where the judge sued the dry cleaners over a pair of pants and wanted more than $50 million? The dry cleaner won, so it did not pay anything.

Before a party has to pay anything, a judgment has to be entered against it/him/her. In other words, the other side has to win. Once the winning side gets the judgment entered, it can try to collect the judgment from the loser's assets (some assets are protected against collection, which is why O.J. Simpson still receives his NFL pension).

In California, the judgment remains in effect for 10 years automatically. If it's not fully collected in those 10 years, the winning party (called the "judgment creditor" in California) can apply to the court to keep the judgment in effect for another 10 years.

While the judgment remains unpaid, it usually is collecting interest (10% annual simple interest in California.) In other words, if there's a judgment against you for $100 that remains unpaid for a year, you would have to pay $110 to satisfy it. 2 years? $120.

Answer 3

It depends on the individual situation. One, there has to be a judgment. Two, the judgment creditor has to try to collect through attachment, garnishment, etc. Judgments last ten years and can be renewed, so it won't just go away.

Bankruptcy might be an option, but not always. You can't file for bankruptcy as easily as used to be. Bankruptcy doesn't wipe out all judgments either.

Answer 4

The person can declare bankruptcy.

Answer 5

They either declare Bankruptcy or go to Jail or go into hiding.

Answer 6

They bankrupt out.

Or they just don't pay it. If you have few assets and not enough income, they can't even garnish your wages.