What happens in a defamation case if the defendant does not have sufficient assets?

In Texas, if the defendant does not have enough assets to pay a judgment or settlement awarded after a defamation lawsuit, the plaintiff would not get any money awarded to them. That does not mean, however, that the defendant gets off the hook. Instead, the plaintiff wins the lawsuit by default, and the defendant is still liable for the amount of damages they caused (which is determined by a jury or judge depending on the specifics of the case). If the defendant still wants to pay the amount they owe, they will have to find the money elsewhere. This could be done through borrowing money, seeking financial assistance from family or friends, or by selling assets. In the case of selling assets, the defendant will be responsible for paying the remaining balance on the amount they owe. In some instances, the plaintiff may choose to pursue a lien against the defendant’s property, meaning they can legally sue the defendant for the amount they owe. This lien will stay on the defendant’s property until the debt is paid off in full. In extreme circumstances, a court may order that the defendant go to jail for a certain amount of time, in lieu of paying the damages awarded to the plaintiff in the case. This is typically reserved for those who are found guilty of fraud or other criminal activities. It is important to note that, regardless of the Defendant’s financial situation, they still need to adhere to any court-mandated punishments. This includes following orders such as making restitution payments or other conditions outlined in the court’s ruling.

Related FAQs

Are there any restrictions on the content of a settlement agreement in a defamation case?
Is there a limit to the amount of punitive damages a person can receive in a defamation suit?
Is a person required to demonstrate actual harm in order to sue for defamation?
What is the difference between public and private figures in a defamation claim?
Is defamation a criminal offense?
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Does a publisher or website have liability for third-party comments posted to its site?
How do defamation laws vary from state to state?

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