Been seeing a lot about the Alex Jones case (sued by families of Sandy Hook victims for $1B.)
After bankruptcy, iquidating his assets (home? Car? Studio?) AND giving up his companies, he STILL owes more money/,
How can someone left with nothing (and still in debt) get basic care / necessities / housing when their income must all go to the lawsuit?
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His assets are being liquidated over time so basically unless he funneled a lot offshore he will be fucked. Most rich scheming people will do just this for the exact reason.
Financial judgments like the one ordered against Alex Jones do not liquidate *all* of a person’s property and garnish *all* of their income. The stipulation of any given order may differ from another, but generally, the person against whom the judgment was made is allowed to keep whatever the judge considered necessary for that person to continue living. That *could* involve something like forcing a person to sell their very expensive house and move into a cheaper one instead but not necessarily.
They don’t actually take *everything*. Generally they still make a base amount and it’s only whatever they make beyond that level that goes to pay the lawsuit. This includes things like being allowed to keep residential homes. I believe Jones tried to claim he needs $61k/month for living expenses which is obviously absurd.
This is the point of bankruptcy. Most of these court-ordered damages are dischargeable debts, meaning that (in the US) in a Chapter-7 bankruptcy, they will just be wiped out after the bankruptcy is completed. That’s not to say that this is a way to avoid paying altogether. Bankruptcy requires that you pay what you can, and do your utmost, which may include selling any (non-exempt) property (like a second home or other real estate, any art or jewelry, etc.). So e.g. if you are ordered to pay someone $10 million in damages, and the sum total of your non-exempt assets amounts to $5 million, then (if you have no other creditors that take priority in the bankruptcy settlement) you’ll still have to pay the $5 million.
To clarify, you cannot get rid of any and all debts this way. Some debts are non-dischargeable, including debts you owe the government, or if you are behind on child support or alimony payments (amongst other things).
Oh mate even after bankruptcy and asset liquidation, ongoing debts can persist, impacting daily life. Basic needs like housing and essentials can become a challenge
The details vary with what jurisdiction you’re in, but they can’t actually take everything. Might lose your vacation house but most jurisdictions won’t force you to give up a primary residence for example. More extreme ones might require you to liquidate and downsize but…still not going homeless. Similarly they’re not generally allowed to leave you without reasonable transport, take personal necessities, and so on.
Your income may be garnished or assets seized, but you’ll make a case to the judge for your necessary living expenses based on outstanding debts, historical needs based on bank statements, that kind of thing. Not ALL of your income will actually be taken, just what it’s deemed you can get by without.
When there’s THIS much money involved the audit and liquidation process will likely take years and the final payout will be lower than the initial judgement.
You’re allowed to keep certain things and make payments from future income over time, and if you have valuable assets, you’ll often be required to sell them to contribute to what’s owed
They often declare bankruptcy, and then live off friends/family or new secretive income streams.
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