In the event that a judgment is granted against me and it is more than what my insurance policy covers, what can happen to my assets?

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In the event that a judgment is granted against me and it is more than what my insurance policy covers, what can happen to my assets?

I am getting sued over an alleged auto accident that occurred just over 2 years ago. I just recently invested in some real estate with myself and 2 other people.In the event that the plaintiff wins a judgement against me, what can they do with the real estate that I invested in?

Asked on February 14, 2014 under Accident Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

When an individual buys liability insurance, there is essentially always a policy limit in place. This refers to the maximum amount of money the insurance company is responsible for. For example, if you buy a car insurance policy that has a $50,000 limit, the insurance company is going to pay out only $50,000. If there are $100,000 in damages, then the insurance company isn't going to pay the excess $50,000. This money, if awarded by a judge or jury, will have to come from somewhere else.

Answer: If the judgment exceeds your insurance policy then under the laws of all states in this country, the real estate that you invested in can be subject to execution for the excess above your policy.


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