What happens if I sue and the other guy cant pay?

First, absent a contract or statute saying otherwise, you are responsible for paying your attorney,  win or lose.  If the other party's wrongdoing caused you $5000 worth of damages, and your attorneys' fees come to $1,000, the judgment will be for $5,000.    Second, if the loser can't pay, you won't get paid.  However, there are a number of different legal mechanisms available to help you collect on any judgment you obtain, including garnishing the judgment debtor's wages and/or selling his assets, until the judgment is satisfied.  Also, you have a number of years to attempt collection (20 in New York, don't know what it is in Arizona), so the guy may be broke now, but if he comes into any money in the future, you can still enforce the judgment.