QUESTION
What are the claims limit lawsuit against someone in bankruptcy?
Asked on Feb 12th, 2013 on Personal Injury - Florida
More details to this question:
My wife and I were involved in a MVR where we were hit from behind. We both suffered traumatic injuries. My wife in particular has so far resulted in three surgeries, two years of lost wages, mild TBI and filling for SS Disability. The defendant in our suit has a $500,000 policy but that does not cover our costs. The defendant has been in Bankruptcy for two years prior to the accident. Our attorney has obtained a bankruptcy court order allowing us to go after his insurance but since this was a claim limits case before he disclosed to his attorney or ours that he was in bankruptcy, is he protected from any additional damages beyond the $500,000 insurance policy
5 ANSWERS
Criminal Defense Attorney serving Anderson, SC
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The David F. Stoddard Law Firm
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I cannot understand your question. If the at fault driver's debts are discharged in bankruptcy, including your claim, then you are limited to recovering form his insurance, which would be limited to the policy limits. Since you obviously have an attorney, your attorney is in a better position to answer the question.
Answered on Feb 18th, 2013 at 9:58 PM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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Rely on your attorney because he should know all the relevant facts. First of all bankruptcy covers you basically while you are under the protection of the court. Once you have been discharged from bankruptcy you start over. That is the whole purpose of the court to permit you to start over. But what does this tell you about assets. If the person is in bankruptcy how likely is it that they will have anything to pay you with. Not very. Think about it you have a gran idea what your case is worth. your lawyer may have a different idea. Listen to your lawyer.
Answered on Feb 18th, 2013 at 8:20 PM
James Eugene Hasser
If the person that caused the wreck listed your claims in their bankruptcy, which I have to presume they did since your lawyer got permission from the Bankruptcy Court to sue the insurance company, then the bankrupt person may be able to get out of the debt. Any judgment you get against that person over and above the limits of their policy would be an unsecured debt which you would have to file a claim for in bankruptcy. In situations like yours, personal injury lawyers look to other potentially liable third parties, such as the manufacturer of the car you were in, bars that may have over served the offending driver, etc. On the other hand, there may be no other source of recovery and you're stuck with a situation where your lawyer will have to make the numbers work the best he can. One last thing, though; this is a message to and lesson for all...get as much uninsured motorist as you can afford! It's cheap and it's designed to protect you in catastrophic situations like yours. You are more likely to be hurt or killed by an uninsured or under insured driver than by any other driver on the road.
Answered on Feb 18th, 2013 at 7:58 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If this accident took place AFTER the filing of the bankruptcy, I would recommend that you file a Motion in his Bankruptcy to obtain Stay relief, and get what is commonly called a Comfort Order and then proceed against him. A word of caution, as I will presume that this is a Chapter 13 case as you stated he has been in Bankruptcy for two years, you will only be able to go after Exempt Assets, and Assets Acquired Post Filing.
Answered on Feb 18th, 2013 at 7:47 PM
Elder Law Attorney serving Aventura, FL
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Elder Needs Law, PLLC
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You will likely be limited to the 500K policy. Hopefully you have an uninsured motorists policy to contribute as well. Best of luck to you.
Answered on Feb 18th, 2013 at 7:46 PM