To protect yourself from a civil lawsuit you should invest in an LLC if you're run a business and use business entities.
Use personal insurance ownership, use retirement accounts for asset protection, use homestead exemptions, titling and annuities and life insurance and transfer assets to your loved ones.
Also investing in an umbrella liability insurance policy is also a good way to protect yourself from a civil lawsuit.
You can often get an umbrella liability insurance policy from your homeowners insurance company or auto insurance company.
The umbrella liability insurance policy pays out to cover losses that are above and beyond what your normal policy may cover.
The required level of proof in a civil case is the preponderance of the evidence which means that the plaintiff in a civil case must demonstrate that it is more likely than not that the defendant is responsible for the harm that was suffered.
Essentially it requires a greater than 50 percent certainty level of proof to win a civil case.
In a civil case the party with the most convincing evidence wins, even if it's only slightly more convincing than the opposing side.
You cannot go to jail for a civil case unless you disobey a court order after the civil case.
Disobeying a court order in a civil case is contempt of court and can put you in jail.
You cannot go to jail for a debt itself although if you don't comply with a court order or pay a judgement you could be found in contempt of court and face jail time and fines.
The Fair Debt Collection Practices Act makes it illegal for any debt collectors to threaten or arrest you for any unpaid debt.
And you cannot be arrested or go to jail for unpaid consumer debts such as medical bills and credit cards.
You can however go to jail if you don't pay a debt such as child support or don't pay taxes and there is a criminal fraud involved or if you're found in contempt of court for disobeying a court order.
If you don't pay a Judgement that was ordered by the court then your wages could be garnished, your bank account could be seized and your property such as your, motorcycle any other property including your home could be seized.
The creditor can put a lien on your home which gives the creditor a legal claim to your home.
Interest and fees can be added and collection costs, court cost, attorney fees and you could even be found in contempt of court which can result in jail time and fines.
An unpaid judgement can also be added to your credit report and make it difficult to get loans and credit in the future.
To not pay a Judgement you will need to try and negotiate a voluntary payment plan with the creditor.
And file to have the judgment vacated or file a bankruptcy to discharge the debt of the Judgment.
A default judgment can be dismissed or set aside by a court upon a motion from the defendant if they can demonstrate a valid reason for the judgment to be dismissed or set aside.
Some valid reasons for a judgment to be dismissed or set aside are improper service of legal documents, excusable neglect or a meritorious defense to the claim and essentially shows that they had a good reason for not responding to the lawsuit initially and have a legitimate defense against the plaintiff's allegations.
Most judgements do eventually go away after 7 to 10 years depending on the state and the Judgement.
Judgements can however be renewed or discharged through bankruptcy.
For example in California most judgements expire after 10 years, unless the creditor renews the judgment.
Family law judgments, like those from divorce however do not expire.
In other states judgements often last 3 to 7 years, but the length of time depends on the state.
A judgement can be discharged through bankruptcy.
Although a lien may remain in place if the debtor is not entitled to exempt the asset.
Clearing the judgment can be done by paying the debt, vacating the judgment and appeal the court decision.
The debtor can pay the debt in full to satisfy the judgment.
The debtor can also legally challenge the judgment to vacate it.
And the debtor can appeal the court decision with the help of a lawyer.