Corporate Law Asset Protection

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liverpoolwalrus

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I own several rental properties and also have liquid assets in the bank. If a tenant were to prevail in a lawsuit because of some mishap or situation at the property, could s/he have access to the equity in my other rental properties via a lien, for example?

Could I ever be forced to sell one of my other properties to satisfy a lawsuit? Let's assume I have no separate entities on them such as LLCs, nor an umbrella policy (I say that because my concern is that liability could conceivably go beyond the provisions of those instruments). Thanks.
 
Depends on the laws in your jurisdiction, but generally, yes, a judgment creditor can execute against other assets you own and force their sale, or garnish your bank accounts.
 
Thanks. I have no concept of the dollar value of the average judgment against a landlord for negligence. I hope it never happens, and I guess statistically it's unlikely, but just for the sake of discussion, what's a ballpark judgment (in dollars) for a serious injury?

Or more simply, is a $1 million umbrella and a landlord policy with $300,000 for liability adequate protection?

And what about LLCs? If all properties were on an LLC, would all of them except the one the litigant lives in be off limits?
 
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