What happens if I can’t pay a small claims fine?

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What happens if I can’t pay a small claims fine?

I’m a graduate student with no income and was sued out-of-state. I have no money to pay the person who sued me. They won a small claims jugement for $5000.

Asked on December 26, 2011 under Bankruptcy Law, North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you cannot make monthly installments to pay off the $5,000.00 small claims judgment against you, interest on it will accrued at 10% or so. Possibly the judgment creditor will attempt to levy upon your bank accounts and other assets to get some if not all of the judgment paid off.

Assuming you get a job later on, your wages can be garnished to get payment on the judgment. In most states a judgment is good for 10 years where it can be renewed for another 10 years.


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