What to do if If you are sued and have to pay out money?
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What to do if If you are sued and have to pay out money?
My sister and her husband are being sued in civil courts from a car accident that happened almost 2 years ago for pain and suffering and loss of job, car etc.I believe they think they owe more than the insurance company gave them. They had hit a woman so they are at fault. If the court says she has to pay $30,000 and all she has in her savings is about $5000, then how is the rest paid out? They don’t own a house, etc.
Asked on March 16, 2011 under Accident Law, New Jersey
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Your sister and her husband could be subject to a wage garnishment. It does not sound like they have any other assets, but if they do have other assets, a creditor could go after those. Filing bankruptcy will stop the wage garnishment and protect other assets from attempts to collect on the judgment. Depending on their income, they may be eligible to file Chapter 7. It would be premature to file bankruptcy until there is a judgment against them.
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