If you were the defendant in a Small Claims Court case and you lost, you become the debtor.
The person who sued you becomes the creditor.
If you lose your court case, the court may order you to pay money or return personal property.
But the court does not collect the money from you.
What happens if the plaintiff loses in small claims court?
If you are the plaintiff in a Small Claims Court action, you are trying to obtain a money judgment against someone to compensate you for damages caused by that person or entity. A plaintiff who loses a Small Claims Court case cannot appeal. Only a defendant can appeal a small claims case.
Can a small claims case be dismissed?
A small claims case might be dismissed for a number of reasons, but usually it is because the plaintiff failed to comply with some court rule or order. For example, a small claims case could be dismissed if the plaintiff: Misses a scheduled small claims hearing, or.
Does losing in small claims court affect credit rating?
A small claims judgment will affect your credit score because the major credit rating agencies collect public information from federal and local governments, according to Experian. Since a small claims judgment can affect your ability to repay debt, it is factored into your FICO score.
What happens if you lose a lawsuit and don’t pay?
In most United States legal contexts, if you cannot afford to pay a judgment against you, it becomes a debt more or less like any other debt. It can go to a collections agency, they can sue to collect on it, eventually garnish wages or property, and in most cases it would be dischargeable in bankruptcy.