Being sued in excess of my insurance limits

[Romankoke]

I was involved i an automobile accident in 2008 whre I blacked out at the wheel and rear-ended someone which started a chain reaction. I was taking medication at the time, but none were narcotic, and there was no alcohol involved. My truck also flipped over onto another vehicle. I am being sued by 6 people, however only 2 for personal injury ( a man and his son). My insurance limits were 25,000/50,000 for personal injury., and I have a feeling that they will sue for much more than my insurance will pay. I am filing chapter 7 bankruptcy ( I have no assets), but I was told that I cannot include the personal injury into my filing because the case is still in litigation, and there has been no judgement yet. Is this true? What are my options? Isn't there any way that I can prevent them from coming after me later since I'm filing bankruptcy? Please help!

 

[PILawGirl]

Can't squeeze blood out of a turnip. If they go to trial and the jury awards in excess of your policy limits, that's the problem of your insurance company, not you.

 

[army judge]

Can't squeeze blood out of a turnip. If they go to trial and the jury awards in excess of your policy limits, that's the problem of your insurance company, not you.

Au contraire, mon amie.

If the jury awards damages in excess of the policy limits, the excess becomes the liability of the defendant.

It just doesn't go away, either.

And, if the plaintiff is persistent, it can hamper the defendant forever.

Most plaintiffs don't bother going after it, nevertheless they have that judgment.

But, some place a lien against property, garnish wages, or seize assets.

I know one plaintiff that received such a judgment more than 30 years ago.

Every 10 years he gets it renewed.

In some states, unsatisfied judgments from motor vehicle accidents can cause you to lose your driving privileges.

Those unsatisfied judgments can also require you to seek SR22 filings.

This is what Texas requires in situations where the judgment is unsatisfied.

2) Liability Judgment. When the Texas Department of Public Safety (DPS) receives a certified copy of an unsatisfied judgment arising out of a traffic crash that occurred on a public street or highway, the person(s) who the judgment is rendered against is subject to suspension. Texas Transportation Code 601.332, 37 Texas Administrative Code 25.03.

Reinstatement requirements

* Comply using one of the following methods:

Provide evidence that the judgment has been satisfied in the form of a Release (form SR-11); or

Court Approved Installment Agreement (If DPS receives notice that a driver has defaulted on the court approved installment agreement, the license is subject to suspension); or

Judgment Creditor's Consent Form (SR-84). And submit an SR-22 certificate of insurance if within 2 years from the date the judgment was rendered.

If a suspension has been enforced, a reinstatement fee will be required prior to the renewal/issuance of a driver license.

Note: If the judgment is over 10 years old you may file a certificate from the court in which the judgment was rendered that a judgment has not been renewed. Submit the required reinstatement fee.

http://www.txdps.state.tx.us/administration/driver_licensing_control/faq/answers_sus.htm

 

[PILawGirl]

LOL, true, true. I'm just speaking from my own experience, or maybe my boss and his laziness has rubbed off on me That's probably it....

 

[fredrikklaw]

You Were Misinformed!

No, the information you have received is incorrect!

You most certainly CAN include all personal injury lawsuits in your Chapter 7 Bankruptcy petition which can potentially exempt you from judgments against your assets or estate. When you commence bankruptcy proceedings, the Bankruptcy Court issues an automatic stay, or injunction to any action against you with notification going to all creditors and the relevant court where the suits were filed.

While some (or all) of the plaintiffs may very well abandon their claims against you (dismiss suits), others may attempt to find relief from the automatic stay and so continue to prosecute the case even during the bankruptcy. Alternatively, you can wait it out until all litigation has been finalized and then file for bankruptcy as a debt in form of a judgment of from a judgment creditor is considered just as dischargeable as it was prior to entry of judgment.

fredriklaw