Liability limits and lawsuits.

My son had a fender bender about 6 months ago. Police came and information was exchanged. Now the person he hit is claiming injury and is suing my son. My son’s liability limit is $25,000. What if they sue for more? Will they go after other assets? My son does not own anything except that car.

Asked on September 21, 2017 under Accident Law, Maryland


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Your son should refer the matter to his insurance company which will provide him with an attorney at no cost to him and will handle the case.
If the opposing party gets a judgment in the lawsuit that exceeds your son's policy limits, the judgment can be enforced with a wage garnishment.  If your son is a minor, the opposing party could go after your assets and place a lien on your property.
If your son is not a minor,when there is a court judgment against him which exceeds his policy limits, it would be advisable for him to file bankruptcy.  Chapter 7 bankruptcy is straight liquidation which will eliminate that debt.

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