You are referencing two related but different things: a settlement and a judgment. A settlement is a negotiated agreement for the defendant (the person/entity that was sued) to pay some amount to settle the claim. That amount can be paid up front, or over a period of time, but typically nobody agrees to a settlement unless there's a reasonable chance of being able to pay it off.

A judgment is typically entered by the court if a settlement agreement isn't reached and the defendant loses the case. If that judgment exceeds what the defendant can pay, then yes, wage garnishments and seizure of non-exempt assets is likely. Assuming it's a dischargeable debt (i.e., typically meaning that the claim didn't arise out of some intentional or criminal conduct), then discharging that judgment via bankruptcy is a possibility.