Our family business repaired a car for a client that ended up having some problems. We offered to take the car back and fix it for free but they took the job elsewhere and sued us for not only what they paid there, but claims that we stole expensive items off the car (of course we did not). Somehow our lovely justice system determined we owed them the full amount they sued us for and we were advised not to appeal by our attorney.

So now the woman is calling us and demanding money. We truly don't have any money. No property, no paychecks. We are lucky if we can make our rent every month. Of course she insists we are well to do and that we own many fancy cars. We don't own a single car free and clear... least of all fancy ones. She is basically suing a poor family whose business is struggling.

Today she called my husband and asked him for the money. Of course he told her he didn't have it. She said we could pay monthly but we told her there is no way we can afford that either. She got into it with him about all the stuff we supposedly own and we told her she has no idea about our lives. Then she threatened to have my husband sent to jail (yeah, let's take away a young children's father over a stupid car) and told us she would be calling us everyday.

What are our legal rights here? Can she threaten us with jail or is that harassment? We realize that our hands are tied because the judgment has been entered, but we aren't going to sit back and allow her to threaten us.

Calling you and demanding the money the judge determines you owe is not harasssment. However some of the things she is saying is not factual let alone polite. You do owe the money since the judge says you do. Start trying to work out something or look into filing bankruptcy. If she gets you back in court you may lose what little you have.

You can't go to jail, unless she files theft charges o the items she claims are missing.

She can freeze all of your bank accounts, if you were sued personally, all of your personal bank accounts,
So lets say you have checks not cleared, well they will bounce and the amount in the bank will be frozen
If the business is owned personally the business account will also be frozen.

She may ( depending on the state) get a order to seize some of your personal and or business property to be sold to satisfy the debt. And could get a lien on any property you own.

She may call you every day, even several times a day on this.

You had better find a way to start making weekly or monthly payments to her,

Well those actions would completely put our business under. We are hanging on by threads as it is. We don't own any property. If we did we have already sold it to keep our heads above water.

We have considered declaring bankruptcy in the past. Not sure how that would affect our business but now I am wondering if it will be the only thing that saves it.

Clearly a time to consult with a new lawyer.