eli5 how does paying out sue money work?

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Theoretically you are sued for any amount of money that is more than you have in your bank account and other assets and the person who is suing you wins? How do they get that money? Like say you are worth $20,000 and they sue for $100,000 and win

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Anonymous 0 Comments

If the person getting sued has insurance, the person suing will usually offer to settle at the limit of the policy (unless the person has a boatload of money)

If the plaintiff has a good case, insurance typically settles because otherwise, the insurance can have to pay the full amount of the claim, even if it is several times the insurance coverage.

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