getting sued ?

If it happens claim bankruptcy clean that slate..

 

There's limits on what that can do as well. If you transfer assets to a relative to avoid liquidation in bankruptcy, the judge will most likely disallow your claim - and possibly jail you for contempt. Legitimate claims against your assets from judgements may be allowed depending on how the bankruptcy judge feels about what you're trying to pull off on him.

 

I did ir once wasn't that bad but that was before they reformed the bankruptcy laws..

 

Changes in the bankruptcy laws and the restrictions placed make it harder to walk away from debts. Judgments from accidents may not be "excused". In addition, you might have other assets that you lose under bankruptcy laws. Some states you can lose your home.

 

The best plan... if you ask me, is to let the supertruckers soak up the accidents, while you operate in a safe and legal manner. Nothing better than insurance that's never used.

 

I have a BAS in Business Operations Management and I'm currently studying on-line for my MBA. At first I thought this comment is wrong but I thought about for a little while and I looked up a few items in about ten (10) different text books I have, and I think there is some truth in this statement.

Look:

The only difference between an S.P., LLP, and Inc. has to do with how the taxes are paid.

If your truck is in an accident killing a whole family and you are not the driver this is what would happen.

The lawyer of the family and/or the lawyer for the insurance company that was insuring the car the family was in will file a civil claim in U.S. District Court most like at the closest one to where the victims lived. It will be the John, Suzy, Bobby, Carline Doe family vs. Tom Smith (the driver), All American Trucking, LLC. (your company), and Billy Bobs Enterprises (the broker who brokered that load). Their looking for a million dollars person that where killed plus 33% lawyer fees.

Now lets say your driver was drunk at the time of the accident. Well the driver is found liable so he has to pay, what a moment not so fast.Well the broker had no way of knowing that so he is off the hook. If the lawyers can prove that you or someone at your company knew or had reason to believe the driver was drunk then you pay too, if not you are off the hook too.

Let say your company and the driver are both found liable both the driver and your company are responsible for the full amount, not 50/50! So what happens? Your company's insurance pays but its not enough, so now you have to sell and the company's asset and every penny on the company's books and still isn't enough. Well this is when the company is out of business and the driver is left to finish paying. Now they take all his money and sell all his assets and still not enough. That is when the court attaches his pay, most like for the rest of his life.

As the owner of the company all you lose is the company. All your personal money and assets can not be touched, unless they can prove that you "Pierced the Corporate Vail", with a lot to small business do by mistake. That's when you make the mistake of using the company account for a personal reason/item. If you do this even once then they can take all your money and assets and your spouses too and if all this still doesn't cover the claim then they attach you and your spouse pay until is paid.

Now what happens if you are the driver and the company owner. Everything is the same except on the court papers it is your name instead of Tom Smith.

 

I had an honest Corporate lawyer (sued Bruce Oakley and won) who said, "an LLC for a single truck owner is worth the paper it's written on in monetary value. Leave it alone."

 

I hope you ment 1 million in coverage. IT doesn't go very far now days and anytime a truck is involved with a 4 wheeler and the 15% of the time the truck driver is at fault 1 million doesn't go very far when the lawyers get invovled. Funny how truck gets in a wreck 4 wheeler's at fault trucker gets nothing. truck gets in a wreck with a 4 wheeler. Trucker's at fault 4 wheeler makes a million in a lawsuit and all they had was a scratch.

 

Well I'm studying for an MBA not a law degree but everyone who drives even just a car should know the answer to this question as it is explained in long detail on every insurance policy.

If you are the driver of any vehicle and you are found NOT to be at fault none of this matters.

If you are the driver of any vehicle and you are found to be at fault well then you are liable for what ever damages the court sees fit to award the victims (plaintiff).

Now lets say you are a driver for Jon Doe Trucking and they have a million dollar policy on their drivers. Sounds excellent right?

What if the U.S. Dist. Court awarded the plaintiff two (2) million dollars?

That's right the carriers policy will pay one (1) million and the driver is left to pay the other million dollars and that means they take all the driver's money and assets, and the driver's spouses too cause it all communal just like in a divorce, and if thats not enough the court attaches the pay checks until the judgment is paid off.

If you appeal the judgment you can only ask for a change in judgment of fault not on the amount awarded, and if the appeals court rules you at fault again they can increase the amount first awarded but normally doesn't and normally does order that you now pay extra lawyer and court fees paid for by the plaintiff for the appeal process.