Protecting Your Assets When Someone Sues You After A Car Accident in St. Petersburg
Michael Babboni
Law
If you were involved in an accident in St. Petersburg wherein the other party is not 100% at fault, the other party could still sue you for damages based on the percentage of fault determined by the court. For this reason, auto accident lawyers always recommend taking the necessary steps to protect your assets after an accident is necessary.Can Someone Sue You For Damages In Florida?
While Florida does have a no-fault rule that states each driver’s personal injury protection (PIP) insurance cover the damages they sustained, the other party still has the right to pursue the other driver for compensation, especially if the other party is substantially at fault. The injured party may also decide to sue if the damages they sustained exceeds their insurance coverage. So, it is indeed possible for someone to file a claim against you after an auto accident.
With that said, it is also possible for the at-fault party to pursue compensation from the injured party if they are not 100% at-fault for the accident. In such a case, the case will go to court wherein the court will determine the percentage of fault of each party, which both are, then, required to settle.
No matter the situation, if someone files a claim to pursue compensation from you after an auto accident, you could potentially lose your assets if you do not protect them sufficiently. These are the assets that may be collected to meet the settlement amount:
• Savings accounts (includes personal savings, 401(k), and IRAs)
• Motor vehicles (if the car’s value, excluding all debts for which it is collateral, exceeds $1,000)
• House (generally, possible for second homes or investment properties; homes are generally protected under homestead exemptions)
• Miscellaneous (may include any other items of value, such as jewelry, art, ATVs, boats, trusts, business holdings, trusts, and real estate)
Florida Asset Protection
Fortunately, Florida’s creditor exemption laws are quite generous. These laws are meant to protect people from bankruptcy. Here are some assets that are protected by Florida’s creditor exemption laws:
• Head of household wages
• Annuities and life insurance proceeds and cash surrender value
• Homestead and tenants by entireties
• Employer-sponsored retirement accounts (Roth IRA, IRA, 401(k))
• Disability income
• Prepaid college funding
• Social security
• Other miscellaneous exemptions
What To Do If Someone Sues You
Ideally, your insurance should protect your assets from auto accident liability. If you do carry a car accident or umbrella insurance, your auto accident lawyer should negotiate a settlement with the other party that is within the limits of your insurance coverage. If the claim can be settled in this manner, you do not have to dip into your personal assets to pay for the damages. Likewise, you should work with your lawyer to help you minimize the percentage of fault assigned to you and, therefore, the amount the other party can collect.
However, things do not always go as planned. Sometimes, if your insurance coverage is not enough to cover the cost of the damages, the other party may choose to pursue you for personal liability to collect more money. To avoid losing your assets in case the other party sues you, you should immediately discuss asset protection with your attorney after the accident. Start here:
• Discuss with your auto accident lawyer and insurance carrier whether the damages might exceed your insurance policy limits.
• Based on Florida’s asset protection, determine which of your assets are protected from collection.
• Develop and implement a strategy to protect vulnerable assets—create as many barriers before they can get to your assets.
• Submit a financial affidavit that shows that money judgment collection would be difficult.
All these steps require extensive knowledge of the protections provided by the state of Florida. Furthermore, you need to be careful with the moves you make to avoid fraudulent conveyance, which is the practice of transferring the legal title of properties or moving money to prevent a debtor from gaining access to said properties.
The best way to protect your assets after a car accident is to work with an experienced lawyer immediately to set up a plan to protect your assets even before an accident happens. Ask The St. Pete Lawyer now about how you can protect your assets.