QUESTION
What happens to a pending malpractice settlement if a doctors medical practice files chapter 11?
Asked on Mar 30th, 2016 on Medical Malpractice - Pennsylvania
More details to this question:
My Fiancé has a pending settlement, which an award amount was settled upon, and has not been paid yet (5 years). The original lawyer whom settled the case has been disbarred since then, and now we find out that the doctors company has filed bankrupt (chapter 11). Does this have any bearing on the doctors malpractice insurance paying out? or will the corporations insurance be liable? My thoughts are that the doctors insurance is still liable being that the case was settled all this time, its just a matter of when to receive payment.
1 ANSWER
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As long as the settlement does not exceed the available amount of insurance, your settlement should be fine. In PA there should be at least $1,000,000 of insurance for a physician or his/her practice. I understand that your former attorney was disbarred, but you should speak with your current attorney to see when payment will be made and whether your can get releif from the bankruptcy stay by proceeding solely against insurance company assets.
Answered on Apr 01st, 2016 at 8:03 AM