eli5 how does paying out sue money work?

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Theoretically you are sued for any amount of money that is more than you have in your bank account and other assets and the person who is suing you wins? How do they get that money? Like say you are worth $20,000 and they sue for $100,000 and win

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Anonymous 0 Comments

If you don’t pay anything, they take you back to court and the court makes a judgement against you, potentially including seizing assets or garnishing your wages.

If you have to pay more than you have right then, you’re bankrupt. You file for bankruptcy and most of your debts get renegotiated…there’s no real point in trying to claim money that doesn’t exist. More likely, you negotiate some kind of repayment plan.

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