I understand where you are coming from and your assessment is correct for a big segment of society. Without getting into a long discussion of how certain segments of socio-economic-cultural-educational circles conduct their lives, I can assure you that "bad credit" is normal and a way of life for large chunks of society. It really isn't that big an issue for them. It is inconvenient but not catastrophic. Sadly, it is a natural way of life for them.
I personally dealt with those types of people for many years and I was amazed how people exist and get by. I removed myself with such clientele because I could not stomach it anymore but I know people who still do business in those circles. I continue to get schooled by new stories and techniques of how people get by in society with no computer at home, shit credit, no checking, no education, no checking account, etc. But they have a smart phone. :-)
They could care less about any judgments because they have learned on the streets most judgments (default or not) don't impact them much. If it did, they wouldn't continue to indulge in such behavior.
As I have repeatedly stated in these forums, go have an honest talk with someone inside most collection agencies. There is a HIGH ratio of uncollectibles that exist and it is their full-time job and business to collect. Collection agencies stay in business because "assets" (receivables/judgments/debts/claims) are freely given to them to work. Major financial companies sell their receivables, debts, and paper for pennies on the dollar just so they get "something" besides a total loss.
People who don't want to pay find ways of being evasive. Sure, there are occasional victories but it requires too much time and resources to collect. Unfortunately, I have learned the hard way. And even lawyers who are in the business, have their limits of how much energy they will spend pursuing certain folks.
And your points of "fight then fight" or "settle then settle". Sheer avoidance IS a form of fighting! It is a fight on THEIR terms which is "catch me if you can". Like all fights, there are winners and losers. Some do it better than others.
The way I see it is, it always comes down to how hard someone is willing to avoid. Their socio-economic-cultural-educational background is very determinant on how it all goes down.
Regarding liquidating assets, what do you consider assets from ordinary people? Their furniture, used clothes, big screen TVs, computer, cell phones, musical industries, toiletries, supplies? Most "assets" are very low value or nearly worthless. Any pawn shop will quickly educate anyone what the true market value of such items are worth.
Meaningful assets might include artwork, high-end furniture, real estate, business inventory, a brick-and-mortar business, bank accounts, etc. But a very determined and knowledgeable person could place many of those types of assets within other legal entities or people they trust. So, on paper, they look like they have few assets.
And retirement accounts and many trusts are nearly untouchable. There are very savvy high net worth people who aren't going to let all their assets be in their name and be exposed to just anyone easily collect from them. They could have a network and web of smaller entities, accounts, trusts, trusted individuals, etc. Divorce lawyers are a group to turn to get stories of high-class avoidance strategies because they have to sniff them out from spouses who don't want to disclose ALL the assets they have.
Both low-class and high-class avoidance strategies are alive and hidden in plain sight. In some circles, they are called "asset protection strategies" and they are taught by many lawyers! I know because I have taken some seminars over the years on such topics. Very practical and good to know if you ask me.
I have considered writing and publishing about such topics for the affluent audience. Lots of people who fear the loss of acquired assets so I think there is a big, underground interest in such topics.
If the judgments are against individuals (as opposed to companies) then there is a higher likelihood of collectability because you can't just "walk away" without doing some serious damage to your personal credit. If you have any assets they will just be liquidated to pay off creditors in bankruptcy, so it might make more sense to scrape up the money and try and settle it rather than nuking your credit for the foreseeable future. Judgments resulting from intentional torts generally cannot be discharged in bankruptcy anyway, and I am willing to bet that Higbee argues that these are "intentional" infringements when applying for the default judgment.
My point is, if you are going to fight then fight, if you are going to settle then settle. If you do get sued, then ignoring the problem and getting hit with a default judgment is usually the worst thing you can do.
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