An automatic stay is imposed by Federal Law when an entity files for bankruptcy. So your lawsuit may not proceed while the hospital is in bankruptcy. The hospital should have a policy of liability insurance which covers, in whole or in part, any damages awarded to you because of the accident. The hospital's bankruptcy filing does not effect the insurance company's obligation to indemnify the hospital ( Pay your damages up to the limits of liability coverage under the policy) for your accident.
Answered on Dec 18th, 2012 at 12:20 PM