FAQ: Does being sued hurt you?

Q: I caused an accident and my insurance company did not settle. Is being sued going to affect me?

A: Maybe. Is it going to affect your day to day life? Probably not. Here are a few ways it can affect you. First, you may have to be deposed (answer questions under oath) and that may take a few hours. Second, you will have to answer written questions sent to you (interrogatories) and that may take a few hours. Third, if there is an arbitration, your presence may be required and that can be a half day or a full day. Fourth, you may end up in a trial and that may cause you to miss a week or so from your regular activities. Oh, and no one pays you for this time.

However, what if you are sued and you want to buy a new house or apply for credit? Most credit applications require that you disclose that you have been sued. You should ask the attorney who is defending you for a letter explaining the circumstances, that you have insurance, and that they will pay a judgment against you. This is a pretty simple letter and it will go a long way to helping you avoid problems. Your attorney should have no problem giving this to you.