Can I Lose My House Due to a Car Accident That Was My Fault?
You might not think that getting into a car accident could impact ownership of your home, but under Ohio accident laws, you could lose your house for being at fault in a car accident.
If someone else is injured in a car accident that you caused, the injured party has the right to seek compensation from you for such losses as medical bills and vehicle property damage. Normally, this money would come from your auto liability insurance.
But in a catastrophic car accident, such as one causing permanent disability, standard liability insurance will not cover all of the injured party’s losses. To recover additional compensation, or “damages,” the injured person might sue you, and if they prevail, can seize assets to satisfy a jury award. This might include taking your house.
At Amourgis & Associates, Attorneys at Law, we can help you protect your home and other assets if you are in danger of losing a car accident lawsuit. Below, we discuss why your home might be at risk after a car accident and how to protect it.
Our Ohio consumer law firm handles personal injury claims and personal bankruptcy cases. We only provide legal representation to consumers, never businesses or insurance companies. Contact us today for a free initial consultation to discuss asset protection strategies after a car accident.
Can I Lose My House Due to a Car Accident That Was My Fault?
It’s a scary thought, but the answer is yes, you could lose your house due to a car accident that was your fault. In a lawsuit over a catastrophic accident in which the plaintiff’s attorneys do a thorough job of proving the defendant’s liability and presenting the full extent of their losses, the jury could potentially award the plaintiff millions of dollars. To collect on such an award, assuming the defendant cannot pay it, the plaintiff has the right to seize and sell the at-fault party’s assets, such as their house.
Understanding Liability in At-Fault Car Accidents in Ohio
Ohio is considered an “at-fault” state when it comes to car accidents and auto insurance. This means that, after a car accident, the party at fault is responsible for losses suffered in the accident. Therefore, car owners in Ohio are required to maintain a prescribed amount of auto liability insurance, which pays out to those injured by the policyholder or others authorized to drive their vehicle.
In no-fault states, car owners are required to maintain personal injury protection (PIP) coverage, which is a type of auto insurance that pays for their car accident losses, regardless of fault.
Ohio car owners are required to carry auto liability insurance that provides at a minimum:
- $25,000 for bodily injury or death per person
- $50,000 for bodily injury or death per accident
- $25,000 for property damage
After a car accident, the injured party would go through their insurer to have the at-fault driver’s liability insurance pay for their bodily injury (medical bills) and property damage (car repair or replacement).
As you may recognize, $25,000 won’t go very far to cover medical bills incurred for a serious injury, such as a traumatic brain injury or spinal cord injury with paralysis. When the damages exceed the insurance coverage limits, the injured party may hire a car accident attorney to pursue a personal injury lawsuit.
When Are Your Personal Assets — Like Your Home — at Risk?
If insurance will not make the injured party in a car accident financially whole, Ohio law allows them to sue the at-fault party for damages. In such a personal injury lawsuit, the injured party (the “plaintiff”) may seek compensation for:
- Medical expenses, including the cost of future care
- Property damage
- Lost wages and loss of earning capacity
- Pain and suffering
- Emotional distress
- Loss of quality of life
- Punitive damages (in cases of egregious negligence, such as drunk driving)
Steps to Protect Yourself and Your Assets After an Accident
Ohio law requires car owners to purchase a minimum of 25/50/25 auto liability insurance coverage. And while most people carry only the minimum, there’s nothing legally to stop you from buying additional coverage.
Some insurers will provide packages of $100,000 per person for bodily injury, $300,000 per accident for bodily injury, and $50,000 for property damage (100/300/50), but in theory, there’s no maximum amount of liability coverage you can purchase.
Another crucial factor to know about car accident and personal injury law is that Ohio follows a doctrine of “contributory fault.” Under this rule, each party is held responsible for damages in proportion to their own percentage of fault. But if the plaintiff’s negligence is too much, they cannot recover damages.
In Ohio, if the plaintiff is determined to be 51 percent responsible for an accident, they cannot be awarded damages. For example, if your attorney can show that the plaintiff was speeding or on the phone at the time of the crash, this may be enough to diminish or even to bar a jury award despite your contributions to the accident.
If winning a car accident lawsuit is unlikely, you might consider bankruptcy as a means of protecting your assets. While many individuals seek bankruptcy protections when they are overwhelmed with debt, bankruptcy can also proactively protect your assets from a lawsuit.
Homestead Exemption in Ohio — Will It Protect Your Home?
A Chapter 7 bankruptcy allows you to eliminate, or “discharge,” most unsecured debts, such as credit card bills, medical expenses, and personal loans. To satisfy debt that cannot be discharged, you would sell certain assets, but Ohio bankruptcy laws provide exemptions to protect certain assets from liquidation.
Ohio’s homestead exemption allows an individual to exempt up to $182,625 worth of equity in their primary residence from bankruptcy liquidation. Married couples filing jointly can double the exemption if they share ownership, for protection worth $365,250.
If you aren’t behind on mortgage payments, you should be able to protect all of the equity in your home with the homestead exemption and save your home from creditors and lawsuits.
Contact Amourgis & Associates to Learn More
At Amourgis & Associates, Attorneys at Law, we help individuals and families resolve their most pressing financial problems and plan for the future. Contact our law firm today to get the legal help you need in a free consultation with our Ohio personal injury lawyers and bankruptcy attorneys.
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At Amourgis & Associates, Attorneys at Law, we only represent consumers. We fight for regular people who have been seriously hurt in accidents. We fight for people who are being crushed by overwhelming debt and need a fresh start. We fight for individuals and families. Never businesses. Never insurance companies. We are loyal to the consumer.
