If a person is found at fault for the car accident, the other driver may file a personal injury lawsuit and get financial recovery for lost wages, medical bills, property damage, pain and suffering, loss of consortium, and the like. For example, the creditor may examine nearly all the debtor's financial documents, including bank records, tax returns, and wage statements. Being Sued for Car Accident but Have No Assets - Is It Possible? However, effective asset protection makes it difficult for the injured person to collect on the balance of the judgment. You can find him on: Other than your initial negligence, the cause of filing this suit is outside of your fault and control. If you find yourself being sued for car accident damages, keep the following in mind: Do Not Admit Fault If you find yourself involved in a car accident lawsuit, it means that the party raising a lawsuit against you believes that you are at fault for the accident. Rachel Podnos, J.D., CFP, is a fee-only financial planner with Wealth Care LLC. This means that if you cause an accident while driving a car appropriately titled in your name, a plaintiff cannot come after funds in an account you own with your spouse as tenants by the entirety because your spouse also owns 100% of the funds in that account. If one was not at fault in a car accident, they might be considering filing a civil claim against the other driver under personal injury laws to defend their interests. It's never a good idea to admit fault to a police officer or the victim of the car accident. You could be responsible for damages in excess of the policy limits. Florida law provides a judgment creditor with various tools to collect a personal money judgment from a car accident lawsuit. Aninsurance settlement includes a release of the car driver and owner. It's possible to sue the insurance company for punitive damages if this occurs. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Vehicles are also safeguarded, especially if they're used for commercial needs. Accident While Driving a Personal Vehicle for Work, How Medical Bills Are Paid After a Car Accident. In two cases, a driver who is found to be at fault in an accident may be forced to pay compensation funds from his or her own properties. You can purchase such a policy from your auto insurer (or another insurer), and coverage shouldnt cost you more than around $300 per year per $1 million in coverage. This can include fines for driving without insurance, jail time, and suspended licenses. Many drivers play a form of Russian Roulette because they drive without adequate insurance. But having limited assets or no assets is not a get-out-of-jail free card. For specific information related to your state, reference the Terms of Use. Wage garnishments remain in effect continually during the debtors employment or until the debt is paid. It is important that one contacts their car insurance company right away to inform them of your situation, as they play a significant role in the case. In reality, this rarely happens. The average price for a new car as of June . Contact The Keating Firm LTD. for legal assistance regarding car accidents, criminal defense, wrongful death, dog bites, and others. Without proper car insurance or high enough policy limits, one might wonder if they can get sued by the injured person. Heres What Happens If Sued for Car Accident But Have No Assets. If one is struck by a driver that does not have insurance, this should protect them up to a certain limit (or without sufficient insurance). People may worry about getting sued after a car accident, and they want to know how to protect what they have from a potential judgment. If someone with severe injuries sues the at-fault party and they don't have insurance, they should expect to pay the damages themselves from their personal bank account. The decision to sue someone with no money depends on the unique circumstances of the case. They can use various judgment collection tools to collect on their judgment. The insurance company should provide one with a lawyer at no cost to them. Samantha Allen leads the insurance team at NerdWallet. How to Prove You Are Not at Fault in a Car Accident. What Happens When Someone Dies in a Car Accident? Still, if the income doesn't fall into those three categories, a judge might take 25 percent of those earnings to recover what the victim is owed. Attorney fees are usually covered by the car insurance company. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. The victim of the accident has the right to receive compensation for their injuries, whether the other party has the money to pay or not. Easily compare personalized rates to see how much switching car insurance could save you. While they often provide free consultations, the lawyer wants to get paid just as much as the victim of the accident. However, they can still cause a car accident. Taking these two things to heart ensures that the likelihood of an accident is lower. PLEASE ADVICE. Schedule a phone or Zoom consultation to review your specific situation. How Long Do You Have to Report a Car Accident? Any assets you have could become fair game, with the exception of retirement accounts. Alternative forms of dispute resolution, such as mediation or settlement negotiations, may also be worth considering. Although this is a choice, it is thankfully rarely needed. In this situation, that debt type isn't like tax debts or a student loan that's hard to get rid of. The most severe consequences of a car accident may often appear months later in the form of a lawsuit. If you do decide to personally sue the driver for your car accident, your time is limited. Contact the law firm to arrange a free consultation with one of our attorneys or lawyers for more information or to get the answer to any question about the law following a wreck. Regardless, it is best for the person to try to maintain composure. 5. Most states do not allow someone to sue the insurance provider directly. In most cases, the injured partys attorney will settle their claim for an amount within the limits of the defendants insurance. Do You Get a Ticket for an At-Fault Accident? It can be difficult to recover any court-awarded damages if you sue someone with no money. The attorney appointed by your insurance company will contact you to request any accident information and evidence you have collected and will likely pursue a settlement with the plaintiff. What Happens If Someone Else Crashes Your Car? We provide every client with an initial free consultation that could assist you in better understanding the situation. If your spouse is driving a car titled in your name and he or she causes an accident, a plaintiff could come after your assets, your spouse's assets and any jointly held assets. What Happens When You Sue Someone With No Money? The defendant wants to demonstrate that collection of a civil judgment would be difficult. Why? It is highly unlikely that any of your personal assets would be at risk since it appears you had adequate insurance coverage. You always have the right to hire your own lawyer. In Washington, you also have a $125,000 homestead exemption, meaning that if your equity in your home is less than $125,000, the judgment creditor cannot reach it. But the day your child turns 18, you should sell or gift the car to him or her, whatever it takes to get the car titled in the childs name only. If someone declares bankruptcy Chapter 7, creditors cannot collect from them, and that often includes attorneys and victims of car accidents. This allows drivers to sue for damages. However, only $605,000 in equity is exempted. Debtors who qualify as head of family (also called head of household) under Florida law are usually exempt from wage garnishment. What are my options? This information may be different than what you see when you visit a financial institution, service provider or specific products site. The information on this site may be considered a lawyer referral service in some states. What Happens if Someone Sues You After a Car Accident? Andrew is also the founder of If you are a homeowner and are being sued for a car accident but have no other assets, your home may be in danger. The car that the older child was driving was titled in Georges name. The long answer is a little more complicated. The four-year timeline stems from Section 95.11 of Florida law. Though the at-fault driver is responsible for covering any damages, methods exist to lower the costs and protect the person's wages as much as possible. Another important reason to notify the insurance company of the accident is to take advantage of the coverage they will provide one if they are sued. That applies, even if the driver wasn't considered at fault for the car accident. Once a lawsuit is filed, you can expect to hear from the lawyer your insurance company has retained to fight the legal action. In that case, the plaintiff is more likely to settle with the insurance company for an amount within the policy limits. Be proactive in strategically protecting your assets, just in case. Generally, most states require such coverage to legally drive a vehicle. In an at-fault state, if the other driver hits the victim, they can be sued by the victim's insurance company or the plaintiff's attorney. If you settle all the claims against you by the passenger of the other car for his or her personal injuries through your own insurance policy in a written settlement agreement and a dismissal of the complaint against you with prejudice, you do not have to worry about protecting your personal assets. My Car Insurance Lapsed and I Had an Accident. The car is titled in your name. To determine equity, you need to subtract any mortgage or other lien from the value of the property. The content and materials presented on this site are for informational purposes only and should not be construed as legal advice. Simply go to your bank and brokerage company and ask them to title your accounts this way. And, in the event you dont have liability insurance or are driving a car with insurance youre not named on, you can be held personally liable for all damages. If the guilty party had no policy with an insurance company or the policy limits were too low to cover everything, they are expected to pay the damages through wage garnishments or out of pocket. Being sued can be a terrifying experience. Florida residents have available some of the strongest asset protection tools in the country. However, one should consult with a lawyer who is familiar with the laws governing traffic accidents in their area before bringing a complaint. Many individuals have insurance that covers uninsured or underinsured motorists as part of their coverage. They may assess the situation and advise one on the best course of action. Therefore, an uninsured or underinsured motorist might be sued regardless of their ability to pay. No. Most of the time, a judgment that can't be paid turns into another type of debt. NerdWallet strives to keep its information accurate and up to date. No law in Florida requires the at-fault car driver to submit an asset affidavit. If a lawsuit is filed, your insurance company will retain legal counsel to defend the lawsuit. Therefore, if the guilty party has no insurance, they are held personally responsible for the judgment entered against them and must pay it themselves. Be prepared to provide details of the accident and any evidence you gathered at the scene. How much can I borrow mortgage calculator, Best lenders for low- and no-down-payment, Best options trading brokers and platforms, Do not sell or share my personal information. The plaintiff can direct the debtors employer to withhold and pay to the plaintiff up to 25% of the debtors wages net of tax withholding and other required deductions. Pre-qualified offers are not binding. After all, it's expensive and time-consuming to go through a lawsuit. She causes a five-car pileup. Posted on Mar 24, 2011 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). Generally, if a person is at-fault for a collision and had insurance at the time of the collision, the person can submit the claim to their insurance carrier to defend them. The at-fault drivers best course is to review their asset protection status, fix any issues, and then consider a financial affidavit. But sometimes, car accident cases do turn into lawsuits, particularly if the driver carries minimum insurance or the defendant appears to have substantial unprotected assets. They live mostly paycheck to paycheck, so they do not have much savings in the bank. Filing for Lost Wages After a Car Accident Injury, How to Get Pain and Suffering Damages After a Car Accident. If the at-fault person doesn't have the resources to cover the judgment or claim made against them, they're called "judgment proof.". First, since it's illegal to drive without liability insurance, the state could impose penalties equaling hundreds of dollars or more. This scenario may sound far-fetched, but its not. Defendants with inadequate insurance need properly plannedasset protectionto avoid collection on a personal judgment and to improve their negotiating position during the settlement process. Notify the Insurance Company Start by reaching out to your car insurance company. It all depends on the amount of equity you have built up in your residence. You Have a Limited Amount of Time to Sue Someone After a Car Accident in Georgia. An umbrella liability insurance policy provides you with personal liability protection above what your automobile and homeowners policies cover. What if you cant afford to pay the damages sought? Often, insurance companies don't disclose information about how much personal injury cases might cost out of pocket. However, the guilty person must pay whatever the settlement agreement or judgment is. Whether the victim was rear-ended, was hit head-on, or got T-boned, the insurance covers the damages for the lawsuit. If you are the defendant, we search for all the evidence showing that the other driver had a part to play in the accident. In this case, the court judgment may become unenforceable. Pre-qualified offers are not binding. The vast majority of car accident plaintiffs and their lawyers prefer a quick and easy insurance settlement, no matter how small, rather than filing a lengthy, expensive, and risky lawsuit against someone that does not have any assets. Home Car Accident FAQs What Happens if Someone Sues You After a Car Accident? If you're sued for more than your coverage, contact Ehline Law to help protect your rights. Therefore, their assets could be taken away if the claim is significant or there were serious injuries involved. It's possible that they have been hurt, too. If one does not have the financial means to settle a lawsuit or judgment brought against them, they are considered "judgment evidence.". For example, the creditor may examine nearly all the debtors financial documents, including bank records, tax returns, and wage statements. The same applies to people that do have some or even a substantial amount of assets, but who are able toprotect those assets from creditors. Receive a free consultation about fighting the victim's personal injury lawsuit. What Happens If You Get into a Car Accident Without Insurance? Being Sued for Car Accident but Have No Assets - Is It Possible? Should one's doctor confirm that they have suffered any form of personal injury, they are entitled to any of the insurance companies involved to pay them out. 1. Being Sued for a Car Accident But Have No Assets. If the other party has no assets or income, recovering damages awarded by the court may be challenging, and legal action may prove futile. The injured party can file a personal injury claim with a lawyer's help or might go through their insurance adjuster. Just know the cost comes out of your pocket. Keep up with your favorite financial topics on NerdWallet. However, in most cases, a financial affidavit that shows you are not wealthy and that you have few non-exempt assets helps the plaintiffs attorney convince their client to settle the claim. Whatever the reason, its important to know what happens if you lose a car accident lawsuit and whether the insurance company or the driver being sued is on hook for the judgment if the case goes to trial. What Happens if Someone Sues You and You Have No Money? It's just not wise because they are likely to win and have trouble recovering the money. It's in everyone's best interest to talk to an attorney about whether a lawsuit should be filed, what steps can be taken if the at-fault person can't pay, and all the rest. For instance, bodily injury costs exceeding a policys $50,000 limit or property damage costs in excess of its $25,000 limit are your responsibility and could result in putting your assets in danger if you dont have the means to pay out-of-pocket. Adequate liability insurance, including an umbrella policy, is the best asset protection against car accident liability. , J.D., CFP, is a fee-only financial planner with. Posted on Apr 6, 2011 If your son was driving your car and he was at fault for a motor vehicle collision, then normally you would be legally liable for the damages done. However, if the at-fault person had no insurance, they can go after the bank accounts and other assets. Speak with a vehicle accident lawyer in Nashville to find out what options are available. Procedures to transfer title on a car vary, so check with your states Department of Motor Vehicles for information on how to do so. While no one expects to get into an auto accident, it is a possibility.
