Legal Question in Personal Injury in Illinois
Automobile accident lawsuit above policy amount
My wife is being sued for injuries from an accident. Our insurance company estimates that her liabilities could exceed the policy limit in a trial, so they are offering the policy limit as a settlement. They seem confident that it will be settled and tell me not to worry, but I'm still paranoid.
If a judgment was made over the policy limit. How could they try to collect? My wife doesn't have anything in her name other than the car and I don't have any liquid assets. Can they go after houses, cars, or garnish wages?
Also, the accident happened to my wife before we were married, but we shared the policy and the car she drives is in both of our names. Since we were not married does that remove my liability?
In the worst case judgment could she declare bankruptcy under the new laws to get rid of a hypothetical excess judgment?
1 Answer from Attorneys
Re: Automobile accident lawsuit above policy amount
If the case is settled for the policy limit, then you will have nothing to worry about.
If the insurance offers the policy limit and the other side refuses, and there is a judgment in excess, your wife will be responsible for anything in excess of the policy limit (except if there was bad faith on the part of your insurance company by offering the policy limit too late or something like that--in which case the insurance will have to pay the entire judgment regardless of policy limit).
Yes--you can ultimately declare bankruptcy and try to get the judgment discharged.
But, chances for it to get there are very slim. If you are not wealthy and don't own more than one house, and are working for a living or are retired and are not a "trust fund" baby--chances are very strong that the lawyer for the other side will simply settled for the policy limit and go away.
I hope this helps,
Taradji Law Offices
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