No one ever plans on getting sued, which makes the scenario that much more complicated when it happens. Facing a lawsuit can be a nightmare, but it isn’t a permanent sentence. There are ways you can protect yourself and your property during this time. Here’s what you need to know.
Having Insurance Helps
Automobile liability and Homeowner’s insurance are two of the most important policies you can have. If you don’t own a home, then renters insurance is equally as beneficial. Both of these instances cover a wide range of accidents, keeping your finances intact during a lawsuit.
For instance, homeowner’s insurance covers everything from your dog biting someone to a passerby slipping on ice in your driveway. Automobile liability can, depending on the coverage you choose, protect you for tens of thousands of dollars in property damage as well as hundreds of thousands in other area.
Form a Trust
A group of personal injury attorneys in Denver recommend utilizing a trust. Trusts are legal entities that hold onto your assets for a beneficiary. They are managed by a trustee who retain full legal control over the funds and property in them.
Trusts are routinely used to protect your assets from creditors, lawsuits, and more. The trick is that the trust must be irrevocable. In other words, you can have no control over it and cannot cancel it. Creating one of these legal entities is difficult, however. You should consult with an attorney before making the decision.
Contribute to Retirement Accounts
As if contributions to your retirement account weren’t beneficial enough, you can protect your assets this way as well. Funds placed in accounts governed by ERISA receive special protections from creditors and are often safe from certain types of personal injury lawsuits. It isn’t always foolproof, but it does help.
Real Estate Protection Laws
If you call a personal injury attorney and ask them how to protect your property, they’ll bring up homestead exemptions almost immediately. While these exemptions differ from state to state, they can often keep you from losing your property when the lawsuit comes with a high price to pay.
You might also be able to check on the titling of your house. In some cases, married couples fall under the tenant category as part of their title. This means you both have indivisible share of the property and must both consent to any changes. That means that if one of you is charged, the other must still consent to the house being sold in order to pay off reparations.
Speaking With an Attorney
Keep in mind that rules governing these options vary by state. The best course of action to speak with an attorney about your options, conveying your desire to protect your property and yourself throughout this lawsuit. It takes a skilled legal professional to navigate these difficult areas of the law. So, get the help you need to protect what’s rightfully yours.