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Tax, SDIRAs & Cost Segregation

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Sarah Jones
  • los angeles, ca
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accident - lawsuit

Sarah Jones
  • los angeles, ca
Posted Jul 1 2014, 11:03

I got in a car accident several months ago. I was found at fault, and my insurance only covered the minimum which is around $20k, but the person claims she needs surgery and requires $200k , she's getting a lawyer to sue. I was already served. The insurance company gave me a defense lawyer. I want to know

1) I have a house , i bought a few years ago i dont know how much equity i have.. i have no money at all just an investment house and my primary resident... if she wins can she force me to sell my investment house? How does it work, can they really force you to sell your house or will they just put a lein?

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Jerry W.
Pro Member
  • Investor
  • Thermopolis, WY
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Jerry W.
Pro Member
  • Investor
  • Thermopolis, WY
ModeratorReplied Jul 6 2014, 07:07

OK @Sarah Jones , I give up.  Forget my advice about 

Originally posted by @Jerry W.:

@Sarah Jones you should scrape together enough money to talk to a bankruptcy attorney. The rules and exclusions on bankruptcy are usually identical to the rules involving asset protection. The bankruptcy attorney can tell you whether or not the judgement is from the accident is dischargeable or not. If it is then the threat of filing bankruptcy might get the other side to settle. The trustee would probably take 25% of the gross proceeds from the estate leaving them with a lot less than if they just settle. If they have a judgement they can also do things like garnish your paycheck, your rent checks you receive, and your bank accounts. You NEED to consult the bankruptcy attorney before they lien your property. It is obviously best to avoid bankruptcy if possible, but if it is not you need to get ready early. You might be able to pay the bankruptcy attorney out of the non exempt property if you are ready early. Good luck.

please listen to @Account Closed , and @Account Closed , take their advice and do not listen to mine to go see an expert in asset protection.  They are obviously experts and have probably handled many such lawsuits and and filed many bankruptcies.  Be sure to get the name of their malpractice insurance carrier also, just in case their advice is dead wrong.

Account Closed
  • Dallas, TX
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Account Closed
  • Dallas, TX
Replied Jul 6 2014, 07:13

@Jerry W.,

It is a little late to try to hide your asset after the fact. People that file bankruptcy are the ones that are looking for an easy way out and don't want to take responsibly for their debts.


Joe Gore

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Jerry W.
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  • Investor
  • Thermopolis, WY
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Jerry W.
Pro Member
  • Investor
  • Thermopolis, WY
ModeratorReplied Jul 6 2014, 07:27

@Account Closed  you are absolutely right about it is too late to hide assets after you are sued.  You should never hide assets, you should protect them.  The best way I can describe it like when you want to buy a house.  You cannot just look at the house and say its nice and I like the price I will buy it.  You need to do the research to find out market values in the area, what are rent prices compared to purchase prices, are prices going up or down.  You need more information to make a well informed decision.  @Sarah Jones needs information she can only get from an expert on asset protection in order to come up with a plan.  If the plan is put together with the best information before she tries to negotiate, her chance of getting a good settlement goes up quite a bit.

As I recall you buy notes.  The average person who had never bought a note would probably say wow a note for only $30,000 and the amount owed on it is $100,000, it must be a good deal.  You however would know that you need to find out what the property is worth, are there tax liens on it, what is the payment history, and maybe many other items of information others would miss.  The same is true in this case.  If that accident debt is a dischargeable debt the Sarah can deal from a stronger position and get a better deal, if she can determine what assets she owns now are exempt from execution that will help her pick a dollar amount she is willing to settle for.  Its all about knowledge up front before you try to settle, just like buying a house or note, you need your info before you try to buy it, not after you buy it.

Account Closed
  • Dallas, TX
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Account Closed
  • Dallas, TX
Replied Jul 6 2014, 07:31

@Jerry W.,

I agree very well put.

Joe Gore

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Jayme Proctor
  • Sherman Oaks, CA
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Jayme Proctor
  • Sherman Oaks, CA
Replied Sep 2 2015, 21:54

Have you discussed your matter with a Personal Injury Attorney??...My cousin slipped at a restaurant the other day. The water wasn't marked so he didn't know the floor was slippery there. He broke his arm when he fell and doesn't think it's fair to pay for it himself. I think he's going to find a Personal Injury Attorney to fight his case. So for any kind of accident case whether it would be personal or not, a lawyer is needed. 

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Paolo Ruggieri
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  • Lender
  • USA
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Paolo Ruggieri
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  • Lender
  • USA
Replied Nov 6 2018, 19:19

My brother in law got hurt and sued ... something very similar happened... in Alabama. It took 7 years of trials!!!! Defendant had an excellent attorney though that always found a way to prolong the case. Sadly my brother in law died of a heart attack recently and never closed the case. Yes these cases can go on for a long time and end up in nothing 

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Bob B.
  • Investor
  • Jasper GA
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Bob B.
  • Investor
  • Jasper GA
Replied Nov 6 2018, 19:54

@Sarah Jones what happened? 

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Replied Jan 9 2019, 00:06

Ah! I am watching ‘suits’ now days and it is probably because of it that I want to desperately clear my law exam. I have been studying for it since a very long time now. Also, I know a very good DUI attorney Los Angeles and really want to be like him.