Found an issue on this page? Let us know and we will look into it as soon as possible.
What do I do if I'm sued and have no assets?
Anonymous1 views7 answers
Technically, if the injured person gets a judgment against you he could come after you for the amount that exeeds your liability insurance (although in Pennsylvania they can't garnish your wages). In reality, this rarely happens. If your insurance company has a chance to settle it beforehand for the amount of your policy limits or less, and they don't, they could later be held responsble for the full judgment, even beyond the policy limit, if they did not act in good faith. Also, many times the injured person will settle with your insurance and then make an underinsured motorist claim under his own insurance (if he bought such coverage) for whatever more that his lawyer thinks his case is worth. In short, in most such cases, nobody wants to have to chase you around to get anything where you have no assets to go after, because they are not likely to be able to collect, and usually they will try to collect all the insurance they can and then drop it. That being said, if you get sued your insurance will hire a lawyer to defend you, but you should consider at least consulting with a separate lawyer to take a close look at the facts and to protect your personal interests, since you do have some exposure.
Technically, if the injured person gets a judgment against you he could come after you for the amount that exeeds your liability insurance (although in Pennsylvania they can't garnish your wages). In reality, this rarely happens. If your insurance company has a chance to settle it beforehand for the amount of your policy limits or less, and they don't, they could later be held responsble for the full judgment, even beyond the policy limit, if they did not act in good faith. Also, many times the injured person will settle with your insurance and then make an underinsured motorist claim under his own insurance (if he bought such coverage) for whatever more that his lawyer thinks his case is worth. In short, in most such cases, nobody wants to have to chase you around to get anything where you have no assets to go after, because they are not likely to be able to collect, and usually they will try to collect all the insurance they can and then drop it. That being said, if you get sued your insurance will hire a lawyer to defend you, but you should consider at least consulting with a separate lawyer to take a close look at the facts and to protect your personal interests, since you do have some exposure.
Don't worry. The likely scenario here is that your insurance company will offer your policy limits in exchange for a full release. That would prevent any suit.
If this information has been helpful, please indicate by clicking the thumbs-up icon below.
Legal Disclaimer:
Mr. Candiano is licensed to practice law in Illinois and Indiana. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. You may contact the writer with these links:
[email protected]
http://www.themargolisfirm.com
I am sorry that you were in a car accident. I hope you did not sustain any injuries in the accident.
You can always be on the hook for any amount if the other party gets a judgement in an amount over the coverage you have in terms of liability insurance.
It will be however, difficult for him to collect from you since you do not have much by the way of assets.
There is very little you can do at this point except notify your insurer of any and all developments and cooperate with them. If you get served with a complaint, notify your insurer immediately and cooperate with defense counsel once appointed. They will be in the best position to advise you at that point.
Most people will accept policy limits if that is all they think they can get in the case. They may be able to pursue their own underinsured coverage. Cooperate with your insurance company and they will help you through it. They will hire your attorney. Bankruptcy may be necessary, but probably not.
The information provided on this website is for general information purposes only. The attorney is licensed in the State of Alabama. No answers or information on this site should be taken as legal advice for any individual case or situation. This information does not create an attorney-client relationship.
Cooperate with your auto insurance company. Contact them if you haven't; an attorney will be assigned. Speak to the attorney about about providing an affidavit regarding your lack of assets. Unless the plaintiff has suffered damages well beyond your policy limits, they will probably not pursue a judgment that they may never collect.
You are also entitled to hire an attorney of your own choosing. Read your policy to find out all the terms of coverage
You might consider bankruptcy. But filing for bankruptcy to avoid a tort judgment has been considered fraudulent by some courts. I think you should talk to your insurer assigned defense counsel once the lawsuit starts to get a better sense of the scope of the damages claimed in the lawsuit.
Armed with that information, you can then better decide your next steps.
Good luck.
