More details to this question:
My 22 year old daughter was injured in a head on collision auto accident on June 8,2011. My daughter underwent surgery, physical therapy and x-rays. We felt lucky that she was covered under my healthcare plan thru my employer. We contacted a personal injury law firm to handle our case. The responsible party (third party) who was at fault for the accident, had low limits on their insurance policy with Farmers Insurance. According to our attorney Farmers can only offer $20,000 maximum to settle my daughter's claim. We just found out that my health insurance company (Healthnet) has a third party clause in the fine print of my policy and as a result their attorneys are asserting a lien on my daughter's settlement which would leave my daughter with only $5700 as a settlement. We were told by our personal injury attorney that if we do not pay the reimbursement claim that our health insurance can be canceled and my daughter can be sued. My daughter was the victim in this whole ordeal and has suffered enough and deserves the whole settlement.
6 ANSWERS
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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The problem is that if you filed bankruptcy now before receiving the settlement the chapter 7 trustee would take the settlement.
Answered on Mar 08th, 2012 at 10:52 AM
Bankruptcy: Creditor Attorney serving Grand Island, NE
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Milner Neuhaus & Judds
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This is not really a Bankruptcy question, but a personal injury question. I practice in both areas. Your Personal Injury Law firm may not understand the "Made Whole" Doctrine. Ask them to research it. They should find that not all subrogation claims have to be paid. Your attorney should have a copy of the declarations page of the insurance contract so that he/she knows what coverage is there. Since $20,000 is below the required minimum coverage in Nebraska, which is $25,000 per injured party, I have doubts that this is "all" the insurance company can offer. Also, assuming this is a Nebraska case and that the car in which your daughter was a driver/passenger was a Nebraska vehicle, it would have underinsured motorist coverage. You should make a claim against that insurance policy as well.
Answered on Mar 07th, 2012 at 5:37 PM
Bankruptcy Attorney serving Clayton, GA
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Gary C. Harris, P.A.
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I do not know what fee arrangements you made with your attorney, but unless his fee violates the Bar rules, you will have to pay it and he has lien rights against your insurance claim. Attorneys have no control over the limits of the defendant's liability policy. There are thousands of people driving in Georgia with no insurance and most people only carry the minimum amount. This is not your attorney's fault. If you feel that you are being charged too much attorney's fees, you can contact the State Bar of Georgia office closest to you and they will provide you with a simple form you will need to complete and file. You do not need an attorney and they will treat you fairly. The form is probably available on the Bar's website.
Answered on Mar 07th, 2012 at 12:56 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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Bankruptcy would not void the lien so filing would not help.
Answered on Mar 07th, 2012 at 12:36 PM
This type of lien is not dischargable in bankruptcy.
Answered on Mar 07th, 2012 at 10:00 AM
Norman Linder Hull
The claim appears to be that of your daughter and probably would not be an asset of the bankruptcy estate (I am assuming your daughter is not the one contemplating bankruptcy). If the lien asserted by your insurance company, which, as I understand, paid the claim, is valid, it will be entitled to the funds it spent for the medical care of your daughter.
Answered on Mar 06th, 2012 at 7:11 PM