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lwpat, Attorney
Category: Legal
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Experience:  Actively practicing trial attorney
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If a family is taken to court for a traffic accident and insurance

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If a family is taken to court for a traffic accident and insurance does not cover the entire amount, can cars or 403B be taken? Would a parents pay check be affected? What about filing banckruptsy, if there is no other funds?
Submitted: 7 years ago.
Category: Legal
Expert:  lwpat replied 7 years ago.

Normally the plaintiff will settle for the amount of the insurance. However, I have known of cases where the family was sued personally and lost a significant amount of money. That is one reason I always advise carrying enough insurance to protect your assets, especially if there are teenage drivers in the family. An umbrella policy is normally very cheap coverage.


One option would be to file bankruptcy depending on the circumstances. Each state has a "homestead" that cannot be touched either by a judgment or bankruptcy. If the other party does get a judgment in excess of the insurance, they can collect in accordance with the laws of your state. They can garnish your wages or bank account and place a lien against any real estate.


If the overage amount may be large, you should with your own attorney and not completely rely on the attorney furnished by your insurance company.


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Customer: replied 7 years ago.
If the driver was a minor at the time of the accident and is now 21, can his wages be garnished? Is a 403b safe? What about life insurance? If we file bankruptsy, will we still have a lean against our home. Will it make any difference, if the other party knows, we only have $50.00 in the bank, (2) 15 year old used cars, and no property? My husband has been unemployed for three years and we have been living on my salary. There is nothing left.

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