Recovering Damages From Defendants In Personal Injury Lawsuits
In personal injury lawsuits, defendants can be sued for damages in connection with a number of assets, from bank accounts, to cars, to real estate, and wages. However, they cannot be sued in connection with some assets, as we discuss below. In addition, we receive a number of questions about defendants potentially evading what they owe to injured plaintiffs by declaring bankruptcy, which we also address below.
Assets Exempted
Typically, the following assets are protected from personal injury lawsuits, with some exceptions:
- Property that is connected to a homestead exemption: This can prevent creditors from seizing a home if the exemption amount is less than equity in the home. Otherwise, a judgment lien can be attached to property, whereby a sale is forced
- Retirement assets: This includes pension plans and 401ks, but IRAs can sometimes be accessible
- Life insurance policies
- Any Social Security, Veteran, and/or related benefits
- Personal belongings related to earning a living – this not only includes clothing and other items, but in some circumstances, vehicles, depending upon their worth
- Bank account balance and wages, to a certain extent and depending upon the circumstances
Other Protection
Other circumstances that can affect your ability to recover from a defendant in a personal injury claim include the defendant having the following:
- A homeowner’s insurance policy with liability limits
- Liability car insurance
- Umbrella insurance policies
- Business insurance policies
- Assets placed in irrevocable trusts`
Bankruptcy Proceedings
If the defendant files for bankruptcy, their bankruptcy petition will typically put a pause on most legal actions, including civil claims and collections. Therefore, if you are a plaintiff, you are much like a creditor in that you are considered to be owed an outstanding debt, but you do have the option of filing a motion in bankruptcy court to seek relief from the “stay” put in place by declaring bankruptcy (if the lawsuit is still in progress). While this does not ensure payment, some plaintiffs will also choose to file a proof of claim to preserve their rights as a creditor. However, this decision should be scrutinized with the assistance of counsel, as there are implications to doing so.
Let Us Help You Today
If you have any questions or concerns about recovery in personal injury litigation, contact our experienced Macon personal injury attorneys at the Law Offices of Buzzell, Welsh & Hill today to schedule a free confidential consultation and find out how we can help.
