What can happen if I crashed my car into a water pipe and 4 apartments in basement of my building were flooded?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What can happen if I crashed my car into a water pipe and 4 apartments in basement of my building were flooded?
The landlord’s insurance company is getting the apartments fixed. Myself and all the tenants have renters insurance with $100,000 liability coverage. I do have auto insurance with $15000 property damage coverage. It seems my landlords insurance company and the renters insurance companies of neighbors would go back of my auto insurance to cover their costs since it is my fault. If the total estimate is more than $15,000 (around $50,000) and my auto insurance clears just $15,000, will the landlord’s and renter’s insurance companies of neighbors sue me for the remaining balance?
Asked on May 27, 2014 under Accident Law, Pennsylvania
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Since your auto insurance is inadequate to cover the damage claims of the landlord and the tenants, they could file a lawsuit against you for negligence. Refer the lawsuit to your auto insurance company which will provide you wiht an attorney at no cost to you. If the plaintiffs (landlord and tenants) obtain a judgment against you which you cannot afford to pay, it would be advisable to file bankruptcy at that time. It would be premature to file bankruptcy until there is a judgment against you because you wouldn't know the exact amount of the judgment prior to that time.
Depending on your income and other factors, you may be eligible to file Chapter 7, which is a type of bankruptcy which eliminates certain types of debts. If you are ineligible to file Chapter 7, you can file Chapter 13; however, Chapter 13 bankruptcy requires a plan (budget) for repayment of creditors.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.