Legal Question in Civil Litigation in California

If I get sued for an auto accident and have. NO assets, what can I do? My mom has already filed bankruptcy but I haven't. Can they seize our 401k retirement accounts? I heard retirement accounts cannot be touched in California and that suing someone with no assets won't do any good. What are the chances of my mom who cosigned for my truck being in the lawsuit? I know many insurance companies won't pay plaintiffs who plan on going after the defendang.Can my auto insurance refuse to issue payment to the plaintiff until he signs a release form releasing me of any further liability? If I say, "There's no use in coming after me, I'll just file bankruptcy and you will have wasted your time so just accept payment from my insurance".


Asked on 5/29/13, 6:42 pm

2 Answers from Attorneys
Anthony Roach Law Office of Anthony A. Roach

You're in a dead panic and you are not pay attention to what I have told you.

If you have auto insurance for an accident, you turn the lawsuit over to the insurance company and they handle it. You don't need to file bankruptcy. That's what insurance is for. The insurance company has a duty to defend the lawsuit, and pays any settlement or judgement against you for the accident.

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Answered on 5/29/13, 9:23 pm
Armen Tashjian Law Offices of Armen M. Tashjian

Counsel is right. Inform your insurance carrier about the accident and they are obligated to handle this claim. If you instruct your insurance company in writing to settle your claim within your policy limits, and they fail to do that, any excess judgment must come out of your insurance company's pocket not yours. Even if you file for bankruptcy they can still pursue the claim against your insurance policy. Also, if they get a judgment against you and it is unpaid, they can ask the DMV to suspend your license until the judgment is paid. Good luck.

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Answered on 5/30/13, 7:31 am


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