I’m in Australia but interested in the process in other countries as well
In: Other
When someone is unable to pay out on a judgment they might end up having their future wages “garnished”, where some portion is taken away from them to pay off debts. But overall if someone is completely unable to pay a judgment then… the judgment doesn’t get paid. It is sometimes called being “judgment proof”, where someone doesn’t have the assets to pay even if someone sues them and wins.
There is no other recourse, nobody steps in and “makes things right”.
For the United States, a judgment accrues interest. So the longer you go without paying it, the larger it gets. If you sell all your assets and your wages get garnished, but it’s not enough to pay it down, it will keep growing.
Most judgments can be discharged in bankruptcy. So if a person can’t pay it, most people will declare bankruptcy and the judgment will go away.
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