What happens if you get sued and have no money or assets in Florida?
If you truly have no assets and limited income, you might be considered "judgment proof." This means that even if the other party wins the lawsuit, they may not be able to collect any money from you. However, being judgment proof doesn't prevent the lawsuit from proceeding or a judgment from being entered against you.
If you don't have enough tangible assets to satisfy a judgment, you might be forced to turn over a portion of your wages to the person or business who sued you until they've recouped what a court has determined you owe them. Other expected (future) assets besides wages can also be seized.
You should still sue someone who has no money for a couple of reasons. First and foremost, you deserve justice after suffering injuries due to someone else's negligence. You also have options for collecting compensation after a favorable verdict, even if the person you are suing does not have much money.
Florida Homestead Protection
Under Florida law, a person's primary residence is completely protected from judgment creditors. A person who sues you cannot cannot take your house to satisfy a money judgment.
Unless you take steps to protect them, most assets are not protected in a lawsuit. One of the few exceptions to this is your employer-sponsored IRA, 401(k), or another retirement account. At Bratton Estate and Elder Care Attorneys, our lawyers recommend putting an asset protection plan in place before you need it.
The sheriff's department can seize: Personal property: movable things (e.g., cars, horses, boats, furniture, jewelry) owned by the debtor. Real property: land and buildings owned by the debtor.
If the judgment debtor does not pay, you are entitled to get the sheriff to seize the judgment debtor's property. The seizing of property by the sheriff is called a levy. Once the sheriff has levied on the property, the sheriff will then sell it, and pay you out of the money the sheriff receives from the sale.
Default Judgment: Ignoring a lawsuit often leads to a default judgment against the person who's ignoring it. This means the court may rule in favor of the other party by default because there was no response or defense presented.
Although you can sue someone for almost anything, you can only recover in court if you suffered an economic loss, known as "damages." There are some areas of law where the result is something other than a monetary award, such as criminal law. In civil cases, the only thing you can win is money.
The answer is, yes, it is worth it. When a true case of defamation exists, there are damages that are caused as a result. Those damages are compensable through a civil lawsuit, in California and beyond.
Does a trust protect your assets from a lawsuit?
A living trust does not protect your assets from a lawsuit. Living trusts are revocable, meaning you remain in control of the assets and you are the legal owner until your death. Because you legally still own these assets, someone who wins a verdict against you can likely gain access to these assets.
In Florida, eminent domain gives the government the power to take your property, even if you don't want to sell. But under the Fifth Amendment, eminent domain must be for a “public use,” which traditionally meant projects like roads or bridges.
Florida asset protection strategies can involve financial planning and financial products that are exempt under Florida law. Annuities of any variety and cash value life insurance are exempt from creditors, and these products enable a debtor to invest in marketable securities through an asset-protected conduit.
To put it bluntly, if you lose a lawsuit—one filed by a creditor, for instance, seeking to recoup the money you owe—you face the loss of assets such as your home, your car and money in your checking and savings accounts.
- Offshore asset protection trusts.
- Family limited partnerships.
- Certain insurance policies.
In general, retirement plans that are covered by ERISA are protected from creditors—and their lawsuits. A 401(k) is an ERISA-qualified plan, so it is likely protected if you get sued. There may be a few exceptions, such as charges brought by the federal government or if you allegedly wronged the plan.
Florida statutory exemptions protect certain assets of a debtor from being seized by creditors to satisfy a judgment. Notable exemptions include the homestead exemption, which protects the debtor's primary residence regardless of value, personal property up to $1,000, and wages of a head of family.
You can't go to jail for not paying a judgment in Florida. Not paying a money judgment is not a crime. While the law gives creditors many opportunities and tools to collect on its judgment, it is up to the creditor to use those tools to collect.
In Florida, a “void judgment” is so defective that it is deemed never to have had legal force and effect, while a “voidable judgment” is a judgment that has been entered based upon some error in procedure that allows a party to have the judgment vacated, but the judgment has legal force and effect unless and until it ...
There are four main ways to not pay a judgment: (1) use statutory exemptions, (2) use protected assets, (3) negotiate with the creditor, or (4) file bankruptcy.
Can creditors take your house in Florida?
Fortunately, your home is safe from any creditors who do not have a mortgage or lien on it. Credit card companies and other unsecured loan holders can't come and simply take your property or home after missing a few payments.
A judgment is good, and can be enforced, for up to 20 years. That seems like a long time, and it is. A judgment is good for 10 years and Florida allows a creditor to “renew” a judgment before the expiration of the 10 years for an additional 10 years, thus giving a judgment almost unending life.
- Step 1: Get an Answer Form. ...
- Step 2: Fill Out the Answer Form. ...
- Step 3: Assert Your Affirmative Defenses & Request to the Court. ...
- Step 4: Deliver a Copy of Your Answer to the Plaintiff. ...
- Step 5: File Your Answer Form and Pay the Filing Fee (or Request a Fee Waiver)
If you do not show up for the trial, the Plaintiff can ask for a default judgment against you as above. You will have missed your chance to tell your side of the claim to the judge.
To respond to the debt collector's lawsuit in Florida, you simply need to file an answer with the county court within 20 days of being served with the summons and deliver a copy of your answer form to the person suing you.
