Starting a Small Claim (20:V): Difference between revisions

One cannot squeeze blood from a stone.   If a defendant has insignificant assets or income, the defendant may have no means to pay a judgment; such a person is “judgment-proof” and a claimant with an uncollectible judgment is said to be holding an “empty judgment”.   A claimant should consider whether it is worth the time, expense, and stress of suing a judgment-proof defendant.

A judgment is enforceable for ten years after it is issued55;  after this time, unless it is renewed, the judgment expires and becomes uncollectible.   On some occasions, a previously judgment-proof defendant  will “come into money” by receiving an inheritance or winning the lottery.   This is a rare occurrence and a claimant must invest time and effort to monitor the defendant’ s circumstances over the ten years that the judgment is enforceable.   A more common change in a judgment-proof defendant’ s circumstances is the defendant securing a higher-paying job.  

A claimant should also consider the likelihood of the defendant going bankrupt.   If the defendant goes bankrupt, the claimant may recover little  or none of the amount of the judgment.   For more detail on bankruptcy, see “Enforcement of a Judgment”.  

A claimant must decide whether or not to sue before the limitation period expires. If the limitation period expires, a claimant cannot later sue  on that cause of action if the defendant’s circumstances change.