Originally Posted by Red__Zed

Regardless, declaring bankruptcy is not a good strategy.

RunNGun: If you don't carry high liability limits, you put your other assets at risk. Guys that don't have much are "collection proof", and it's hard to find a lawyer to go after them on a contingency basis.


With current liability laws, 300k is a pretty safe limit. It's rare that you are found fully at fault for anything, and you can only be ordered to pay a percentage of the judgement value based on how much was your fault (ie, 500k judgement, 50% your fault, you pay 250k). I play it a little extra safe by adding a 1M umbrella on top--because the world is a crazy place, and you never know what may happen...and it's not worth mortgaging your future to save $25 a month.