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Hello, I've question about auto accident insurance liability. What
happens if I'm sued for a very large amount beyond my insurance
coverage and I can no way afford it? What are my options? Do I need to
file for bankruptcy? Will I lose my job if I file bankruptcy? Please
provide your great openions. Thanks in advance. Jom.
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Hello, I've question about auto accident insurance liability. What
happens if I'm sued for a very large amount beyond my insurance
coverage and I can no way afford it? What are my options? Do I need to
file for bankruptcy?
Hopefully the plaintiff's lawyers will be willing to settle for only as much
money as you actually have to give their client. Typically lawyers are paid ona
contingency basis, and they only get a percentage of what the client actually
receives (which can be and often is less than the nominal amount of the
settlement.)
You might very well have to go bankrupt if you can't pay the settlement. Or
you might aternatively have to set up a payment plan out of future earnings.
*****
Tim Horrigan <horrigan@aol.com>
*****
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Thanks horrigan for the reply. Will I lose my job if I file for
bankruptcy? And just clarify your point. I'm new to this country ,
please pardon my ignorance. Say I've 100K coverage and was sued for
500K. is there a chance that they will settle for 100K?
horrigan@aol.com (Horrigan) wrote in message news:<20040115224029.28505.00000074@mb-m01.aol.com>...
Hello, I've question about auto accident insurance liability. What
happens if I'm sued for a very large amount beyond my insurance
coverage and I can no way afford it? What are my options? Do I need to
file for bankruptcy?
Hopefully the plaintiff's lawyers will be willing to settle for only as much
money as you actually have to give their client. Typically lawyers are paid ona
contingency basis, and they only get a percentage of what the client actually
receives (which can be and often is less than the nominal amount of the
settlement.)
You might very well have to go bankrupt if you can't pay the settlement. Or
you might aternatively have to set up a payment plan out of future earnings.
*****
Tim Horrigan <horrigan@aol.com>
*****
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The amount that you are "sued for" is typically meaningless -- just a number
that the plaintiff's lawyer throws out. (In some states, the rules might
limit plaintiff to the amount "sued for", even if the jury goes crazy and
awards a very high amount -- or, if the injuries take a bad turn and the
case turns out to be bigger than initially supposed. So, if the lawyer
himself doesn't want to be sued for malpractice, he will tend to demand an
unrealistic amount, "just in case" the suit takes on unexpected value or
gets an unexpected result.)
I think that most often, unless the defendant is obviously quite wealthy,
plaintiffs will settle within the policy. However, in the case of a
defendant with assets who has foolishly failed to carry enough insurance,
the plaintiff might indeed pursue such a defendant for personal assets.
But of course, I have no idea what the damages are in your case, or how
generous the juries in your venue might be, nor do I know whether you are
being sued by a particularly tenacious lawyer who doesn't mind doing a lot
of extra work to collect a judgment beyond your policy limits.
In any case, your insurance company will quite properly (to cover its own
potential liabilities) send you a form letter, any time you are sued for
more than your policy limits, advising you that the carrier only covers you
to the stated extent, and that you may need to get personal counsel to
defend you against an excess verdict, etc.
If you're worried about it, it might be worthwhile for you to consult an
attorney (other than the defense lawyer hat you insurance company will hire
for you) about whether it is likely that you are actually exposed to an
excess verdict in your case (of course nobody can offer you a guarantee),
and, if warranted, what your options are to protect your assets.
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ajiaa@yahoo.com (JOM) wrote in message news:<7ed92813.0401160702.4adb9e62@posting.google.com>...
Thanks horrigan for the reply. Will I lose my job if I file for
bankruptcy?
No. The short answer is definitely NO!
Although there are a few jobs where you are required to pay your
debts--- but even then you would be fired for not paying the debts
rather than for the bankruptcy. And in your case the debt would be
involuntary...
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Thanks Ted, much appreciated for your great reply.
"Ted Kerin" <tf.kerin@gte.net> wrote in message news:<bu903l01rpi@enews1.newsguy.com>...
The amount that you are "sued for" is typically meaningless -- just a number
that the plaintiff's lawyer throws out. (In some states, the rules might
limit plaintiff to the amount "sued for", even if the jury goes crazy and
awards a very high amount -- or, if the injuries take a bad turn and the
case turns out to be bigger than initially supposed. So, if the lawyer
himself doesn't want to be sued for malpractice, he will tend to demand an
unrealistic amount, "just in case" the suit takes on unexpected value or
gets an unexpected result.)
I think that most often, unless the defendant is obviously quite wealthy,
plaintiffs will settle within the policy. However, in the case of a
defendant with assets who has foolishly failed to carry enough insurance,
the plaintiff might indeed pursue such a defendant for personal assets.
But of course, I have no idea what the damages are in your case, or how
generous the juries in your venue might be, nor do I know whether you are
being sued by a particularly tenacious lawyer who doesn't mind doing a lot
of extra work to collect a judgment beyond your policy limits.
In any case, your insurance company will quite properly (to cover its own
potential liabilities) send you a form letter, any time you are sued for
more than your policy limits, advising you that the carrier only covers you
to the stated extent, and that you may need to get personal counsel to
defend you against an excess verdict, etc.
If you're worried about it, it might be worthwhile for you to consult an
attorney (other than the defense lawyer hat you insurance company will hire
for you) about whether it is likely that you are actually exposed to an
excess verdict in your case (of course nobody can offer you a guarantee),
and, if warranted, what your options are to protect your assets.
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ajiaa@yahoo.com (JOM) wrote in message
news:<7ed92813.0401160702.4adb9e62@posting.google.com>...
Thanks horrigan for the reply. Will I lose my job if I file for
bankruptcy?
No. The short answer is definitely NO!
Although there are a few jobs where you are required to pay your
debts--- but even then you would be fired for not paying the debts
rather than for the bankruptcy. And in your case the debt would be
involuntary...
I am not at all expert in bankruptcy law, but I'll add a few general
comments, NOT as legal advice but as topics for your discussion with a local
lawyer:
1) I don't know if you could use the "potential" judgment in a pending
lawsuit as a liability to justify bankruptcy, by itself. If you do not
otherwise qualify for bankruptcy, you might pretty much have to wait until
the hammer falls (if indeed it does), and deal with it afterward.
2) But, if you are otherwise eligible for bankruptcy, it would temporarily
hold up proceedings in the lawsuit, as an automatic stay. You would have to
notify anybody who is suing you, and their claims would be part of the
Bankruptcy record. The plaintiff's options would include getting an order to
lift the stay only to the extent of your insurance coverage -- with the
result that the lawsuit would then proceed, although any excess verdict
(above your insurance coverage) would have to be dealt with in Bankruptcy
court.
3) Short of declaring bankruptcy, I have known people in your position who
transferred their major assets (houses and cars) to their spouses, during
the pendency of the lawsuit. A local lawyer could tell you whether this
would work or not -- it might be the sort of transfer that could be set
aside, defeating your purpose.
4) State laws vary quite a bit in terms of how much of your assets would be
protected in Bankruptcy. In states that let the debtor shield most of his
assets from collection in Bankruptcy, plaintiffs' lawyers are discouraged
from bothering to make the effort, if the law and their experience shows
that it would be an exercise in futility. On the other hand, if somebody
with substantial assets is stupid or arrogant enough to "go bare" with
little or no insurance, a lawyer representing a seriously damaged client
might vigorously go after such a defendant just on principle, or out of
obligation to the client. Of course I don't know what the law in your state
says on this point, but it's another reason why you might consider
consulting a local attorney for advice.
5) You don't describe the details of the lawsuit against you (most car
accidents involve negligence, but a few allege deliberate ramming), and I
believe a judgment based on intentional wrongdoing (rather than negligence)
cannot properly be discharged in Bankruptcy. You can try it (hoping that the
plaintiff will miss a deadline to object), but you'd be out of line, and if
the judgment debtor protests and shows that the debt is based on intentional
tort, while you have misrepresented the nature of the debt, you'll look like
an even bigger crook for trying to rob him by defrauding the court.
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