Renter Insurance

"Richard Kaplan" wrote:
Has that ever happened in the case where an uninsured renter pilot
with no money (orig poster) will be sued?

Being low on cash is not the same as having zero assets or zero net
worth
and no anticipated future cashflow source.

Agree there, but if someone does $5,000 damage to an airframe, that
amount won't go far at all to pursue it to see if collection is even
practically possible, much less establish the facts of the case. Can
you answer my question about the ins co's business sense, for a mere
$5K minus costs, spreading such ill will in the pilot community over
the matter?

Fred F.

"TaxSrv" wrote in message

practically possible, much less establish the facts of the case. Can
you answer my question about the ins co's business sense, for a mere
$5K minus costs, spreading such ill will in the pilot community over
the matter?

A pilot can do lots more than $5K damage to an airframe.

Then if you consider potential 3rd party liability, i.e. damage to 3rd party
person or property, the exposure is dramatically higher.

--------------------
Richard Kaplan

www.flyimc.com

"Richard Kaplan" wrote:
A pilot can do lots more than $5K damage to an airframe.

Then if you consider potential 3rd party liability, i.e. damage to
3rd party
person or property, the exposure is dramatically higher.


So, make it $100,000. Or $6 million -- taxi accident on the ramp and
ensuing fire consumes a bizjet. For someone without big money in the
bank, and any significant amount of judgment, he'll just declare
bankruptcy. He gets to keep his house, its contents, and his car.
Nothing for the plaintiff but more wasted legal bills to pay.

Fred F.

Good luck. Once again it's your money and your risk, but in this litigious
society, you would have to be absolutely crazy to fly a rented plane without
your own renters insurance. Didn't the senate just pass a new bill to
prevent people declaring bancrupcy to avoid paying their obligations?

- Barney
"TaxSrv" wrote in message
...
"Richard Kaplan" wrote:
A pilot can do lots more than $5K damage to an airframe.

Then if you consider potential 3rd party liability, i.e. damage to
3rd party
person or property, the exposure is dramatically higher.


So, make it $100,000. Or $6 million -- taxi accident on the ramp and
ensuing fire consumes a bizjet. For someone without big money in the
bank, and any significant amount of judgment, he'll just declare
bankruptcy. He gets to keep his house, its contents, and his car.
Nothing for the plaintiff but more wasted legal bills to pay.

Fred F.

TaxSrv wrote:

He gets to keep his house, its contents, and his car.

Not necessarily. I grew up in a house that my father bought in a forced sale due
to bankruptcy. About the only possessions that are safe from the creditors is
tools you use in your profession and some types of retirement accounts.

George Patterson
Why do men's hearts beat faster, knees get weak, throats become dry,
and they think irrationally when a woman wears leather clothing?
Because she smells like a new truck.

On Wed, 13 Jul 2005 18:15:44 GMT, George Patterson
wrote:

Not necessarily. I grew up in a house that my father bought in a forced sale due
to bankruptc

Personal bankiruptcy became a whole lot easier in recent years. Some
of that ease was recently taken back. Dunno what the bottom line is:
probably it's more favorable to the would-be bankrupt than when your
dad bought the house, but less favorable than a year ago.

Individuals go through a different bankruptcy "chapter" than
businesses do. Used to be Chapter 7, probably still is.


-- all the best, Dan Ford

email (put Cubdriver in subject line)

Warbird's Forum: www.warbirdforum.com
Piper Cub Forum: www.pipercubforum.com
the blog: www.danford.net
In Search of Lost Time: www.readingproust.com

Cub Driver wrote:

Individuals go through a different bankruptcy "chapter" than
businesses do. Used to be Chapter 7, probably still is.

Serious question, Dan. Used to be that, when you declared bankruptcy, most of
your assets were sold and all of your creditors (including the mortgage company)
were paid off from the proceeds. Now the mortgage company gets special treatment?

George Patterson
Why do men's hearts beat faster, knees get weak, throats become dry,
and they think irrationally when a woman wears leather clothing?
Because she smells like a new truck.

On Fri, 15 Jul 2005 02:20:45 GMT, George Patterson
wrote:

Serious question, Dan. Used to be that, when you declared bankruptcy, most of
your assets were sold and all of your creditors (including the mortgage company)
were paid off from the proceeds. Now the mortgage company gets special treatment?

My sense is that you get to keep the house AND the mortgage, provided
your equity isn't huge.

In New Hampshire, the "homestead" can be worth $125,000 if recently
acquired, more if older. There's a whole lot of other exemptions,
including books up to a value of $800! One sewing machine! Etc etc. I
don't see any explanation of what happens when there's a mortage on
the homestead.


-- all the best, Dan Ford

email (put Cubdriver in subject line)

Warbird's Forum: www.warbirdforum.com
Piper Cub Forum: www.pipercubforum.com
the blog: www.danford.net
In Search of Lost Time: www.readingproust.com

"TaxSrv" wrote in message

bankruptcy. He gets to keep his house, its contents, and his car.
Nothing for the plaintiff but more wasted legal bills to pay.

Actually the plaintiff will get all the assets except those protected by
bankruptcy laws. The defendant loses a good portion of his net worth and a
severely damaged credit rating.

Or the defendant can buy insurance and the case will probably settle for
policy limits.

Which plan sounds better to you?



--------------------
Richard Kaplan

www.flyimc.com

"Richard Kaplan" wrote:
bankruptcy. He gets to keep his house, its contents, and his
car.
Nothing for the plaintiff but more wasted legal bills to pay.

Actually the plaintiff will get all the assets except those
protected by
bankruptcy laws. The defendant loses a good portion of his net
worth and a
severely damaged credit rating.


And state laws variously list the assets. They may cap a home at like
$150K of equity, and $1,000 on a car. Or practically unlimited home
as in Florida. This implies that someone with basically the above,
and even some cash -- plaintiff must judge if that will be lost to
defendant's legal fees -- is judgment-proof for likely claims
discussed here. What decision a defendant may make concerning credit
rating a plaintiff can't assume either way. An individual, ****ed-off
plaintiff may not care about any of this. But a business will try to
assess the realistic collection potential in advance of spending major
money (my only real point).

Fred F.