When an accident occurs, the at-fault party is typically held responsible for compensating the victim for any damages or injuries suffered. This compensation can include medical expenses, lost wages, property damage, and other related costs. However, what happens if the at-fault party has no assets to cover these costs?
This situation can be extremely frustrating for the injured party who may feel that justice hasn’t been served. However, it’s important to understand that having no assets does not necessarily mean that the at-fault person cannot pay.
Firstly, most people have some form of insurance coverage. If a car accident occurs, for example, auto insurance will usually provide coverage up to a certain limit. Similarly, homeowners’ insurance can cover incidents occurring on someone’s property. The compensation amount might not fully cover all losses but it provides some relief.
If insurance doesn’t fully compensate or isn’t available at all and the at-fault party truly has no assets or income to seize in order to satisfy a judgment against them; they are often referred as “judgment proof”. In such cases pursuing legal action may seem futile as there are simply no funds available for recovery.
However being ‘judgment proof’ is not permanent status; it can change over time if their financial circumstances improve. Therefore obtaining a judgment even when someone is currently unable to pay could be beneficial in long run as judgments remain enforceable generally between 5-20 years depending upon jurisdiction law.
In addition, bankruptcy laws do not protect all types of income and assets from creditors; thus even those who have declared bankruptcy may still have some resources available with which they could satisfy a judgment.
Moreover several states allow installment payments where debtor pays back little by little over time until debt is paid off completely which gives another option for victims seeking compensation from individuals with limited resources.
It’s also worth noting that sometimes multiple parties share fault in an incident like employers in case of work-related accidents, or bars and restaurants in case of drunk-driving incidents. These entities often have deeper pockets and can be held partly responsible for damages.
In conclusion, if the at-fault party has no assets it doesn’t mean victims are without recourse. Insurance policies, future income or assets, installment plans, and third-party liability are all avenues that could potentially provide compensation. Legal advice should always be sought to explore all possible options available to ensure justice is served. It may seem like a daunting task but with patience and persistence victims can still get the compensation they deserve even when the at-fault party initially appears unable to pay.
Munley Law Personal Injury Attorneys
1617 John F Kennedy Blvd #1690, Philadelphia, PA 19103
12155157747