NO RECOVERY, NO FEE (855) 339-8879 FREE CONSULTATION

Impact Of Backruptcy On Personal Injury Claim


Impact Of Backruptcy On Personal Injury Claim lawsuit lawyers attorney insurance business

The majority of personal injury lawsuits are carried out against insurance companies that represent parties. If you were in a car accident, the individual who hit you would not be paying out of his own pocket, but the insurance company that has him covered will pay off the debts you accrued. His premiums and monthly fees will likely increase, though, to offset the losses that the insurance company felt. The same is true for companies, private property holders, and more. However, some companies fall under tough times and end up filing for bankruptcy, in which they are unable to pay off any debts and do not have sufficient income to continue operations. If you have questions about filing a personal injury claim against a company that has filed for bankruptcy, you can contact the Downtown LA Law Group for more assistance.

Bankruptcy Court

When a company files for bankruptcy, all debts and claims are temporarily suspended. Some debts may even be eliminated in some scenarios. There are a few types of bankruptcy, but the two most relevant to the scenarios at hand are Chapter 7 and Chapter 13.

Chapter 7 bankruptcy filing results in a liquidation of belongings and assets. These assets are sold for cash, and the money is then used to pay off the debtors and collectors. Chapter 13 bankruptcy, on the other hand, allows multiple assets to be retained so that the company can still generate income, and a repayment plan will be enacted.

Personal Injury Claims against Bankrupt Companies

Often, an injured victim will have a claim active or open against a company, but due to the amount of time litigation takes, the case could be dragging along. If the company files for bankruptcy, the claim will be under an automatic stay, which means it will not continue while the bankruptcy proceedings are underway.

However, an attorney can utilize the defense that the insurance company has not gone bankrupt. The insurance company generally pays off the debts related to accidents that took place at the company, and the coverage will not go anywhere until the court order has been handed out. The insurance agency will not drop coverage until it is no longer being paid or until a contract has expired. Therefore, victims can still pursue claims against the insurance agency.

In the event a company has already gone bankrupt and you wish to file a claim, you will need special permission from the court. This can happen if you bought a vehicle, for example, and the company went out of business, or if you purchased a product that was defective and the company filed for bankruptcy shortly thereafter.

It is not likely that you will be able to receive compensation beyond insurance coverage, as the bankruptcy estate must be honored. Therefore, it may be difficult for you to acquire punitive damages, which are additional forms of monetary compensation handed out in times of gross negligence.

Our Latest Settlements

$600,000

Shoulder Injury

$599,000

Slip and fall Accident

$360,000

Street Defect

$500,000

Premises Liability

$460,000

Back Injury

$300,000

Premises Liability

$420,000

Back Injury

$310,000

Auto Accident

The Need for an Attorney

There are some legal cases that you may be able to handle by yourself, such as when you are in a fender bender on a road and you only wish to have the mechanic fees paid for. However, when injuries occur and medical expenses rack up and you will be out of work for some time and need to recover lost wages, or if a loved one dies due to the negligence of another party, you will highly benefit from the services of an attorney.

Filing a personal injury lawsuit can already be troublesome if you have no legal experience, no knowledge of civil law, or if you are very injured and have no time for the claim. It is more likely that you will not succeed than you will. Another more complex layer is added when the defendant files for bankruptcy, since you now have to petition the court and use many other avenues to get the payment you deserve.

With the assistance of an attorney, you can be sure that your case is getting the attention it needs and that you are on the way to having your debts covered. If a company files for bankruptcy, the insurance company should not also be absolved of the consequences of accidents.

Earnings from a Personal Injury Claim

Our goal is to ensure that you are fully covered for the losses you suffered. We will do everything in our power to bring you maximum coverage for your damages, even if we have to go to court to defend you in front of a judge and jury. We will pursue the following damages:

  • Medical bills and expenses from the past and future for surgery, hospital stay, ambulance transportation, medication and prescriptions, physical therapy and rehab, and more
  • Lost income if you couldn’t work, such as commissions, benefits, bonuses, tips, and more, as well as future lost wags if recovery time, injury, or medical treatments prevented you from returning to your job
  • Property damage for any lost or broken personal items and belongings
  • Pain and suffering damages for mental trauma, emotional anxiety, fear, PTSD, and more

A company that has filed for bankruptcy should not be dismissive of anyone who was hurt because of its negligent actions. Payment should still be awarded to victims, and we pursue every penny you deserve.

impact of bankruptcy on personal injury claim accident incident insurance

Deadline to File a Personal Injury Claim

It is crucial that you file a personal injury lawsuit within the appropriate statute of limitations. Failure to do so will result in your claim being thrown out and you will not be able to secure any restitution. In California, personal injury lawsuits must be filed within 2 years of the date of the injury, but the deadline can potentially be extended in the following situations:

  • Minors can wait until they turn 18 years old for the statute of limitations to begin
  • Physically or mentally incapacitated victims can wait until they return to health before the statute counts down
  • Defendants who left the state can cause the statute to be frozen until they return to California

If you do not know how much time remains on your case, call us at once. We will tell you the remaining time and will ensure that your case is submitted on time. We will not run any risks of missing the necessary deadlines for your lawsuit.

Free Second Opinion

If you already have an attorney who is hesitant about proceeding with a claim or who has told you that you will not receive any coverage, you may want a second opinion. We offer free second viewings of your case and will give you our input on the validity of the statement, as well as tell you if we believe your attorney is doing all he can to help you. Many lawyers simply take on cases that can be quickly resolved and move through them so they can collect fast settlements before moving on to the next one. We believe this is inherently wrong and is an act of bad faith. We will always give you the no-frills truth about your case as we see it.

Why Select Us

The Downtown LA Law Group has successfully secured hundreds of millions of dollars for our clients throughout the years, some of whom filed claims against bankrupt businesses. We know how to win your case and will stop at nothing to garner a fair settlement for you. Our attorneys are aggressive and relentless in their pursuit of justice, and we are extremely knowledgeable and experienced in personal injury law.

For a free legal consultation, call our law offices today. All consultations are totally confidential and none of your private information or case details will be shared outside of our office walls. We are available 24 hours a day, 7 days a week, and we invite you to ask us any questions you have. We will discuss your case, tell you what we believe it is worth, explain the bankruptcy proceedings, and more.

If you hire us, we’ll also give you our zero fee guarantee on your claim, which means that you won’t have to pay a single dime out of pocket for our services. We will get paid if we win, but the money will come from the settlement given to us by the defendant. If we lose, we charge you nothing. Either way, your finances will remain untouched.

To learn more about filing a personal injury claim against a bankrupt business or defendant, contact the Downtown LA Law Group today.

Other Pages on Our Website Related to This Topic
Hotel Injury Attorneys
Gym Accident Injury Lawyer
Party Injury Lawyer


Over $350 Million Recovered
for Our Clients

Learn More

YOU Deserve the Best
Free Case Review 24/7
You Don’t Pay unless we win
Call 855.385.2529


  • This field is for validation purposes and should be left unchanged.

By submitting this form, you agree to receive telephone calls and text messages at anytime, which include hours outside of business hours (8:00 am PST – 9:00 pm PST). This is so that we may reach you as soon as possible in order to consult on your potential case.

ultimate guide uber lyft accidents

Featured Lawyers


farid-medium

Farid Yaghoubtil, Esq.

sal-medium

Salar Hendizadeh, Esq.

Nina Sargsyan, Esq.

dan-medium

Daniel Azizi, Esq.

 

 

YOU Deserve the Best
Free Case Review 24/7
Call 855.339.8879

  • This field is for validation purposes and should be left unchanged.
By submitting this form, you agree to receive telephone calls and text messages at anytime, which include hours outside of business hours (8:00 am PST - 9:00 pm PST). This is so that we may reach you as soon as possible in order to consult on your potential case.

Address:

LOS ANGELES OFFICE
4113 Clinton Ave,
Los Angeles, CA 90004
855-339-8879
info@downtownlalaw.com

BAKERSFIELD OFFICE
2005, Eye Street, Suite 4
Bakersfield, CA 93301
661-219-7455

MODESTO OFFICE
3430 Tully Road
Modesto, California 95350
209-353-4493

ORANGE COUNTY OFFICE
2372 Morse Ave.
Irvine, California 92614
949-627-8725

SAN DIEGO OFFICE
01 West Broadway
San Diego, California 92101
619-413-0161

OXNARD OFFICE
105 N Oxnard Blvd,
Oxnard, CA 93030
805-263-4423

SAN FRANCISCO OFFICE
1 Sansome St. Suite 3500-11
San Francisco, California 94104
650-651-5006

VENTURA OFFICE
701 E Santa Clara St
Ventura, California 95816
805-292-0367

INLAND EMPIRE OFFICE
7121 Magnolia Ave
Riverside, California 92504
909-340-3929

VICTORVILLE OFFICE
13782 Bear Valley Rd.
Victorville, California 92392
760-563-4384

FRESNO OFFICE
5588 N Palm Ave
Fresno, California 93704
559-556-0227

SAN FRANCISCO OFFICE
388 Market St #1300
San Francisco, California 94111
415-362-6079

SACRAMENTO OFFICE
1601 Alhambra Blvd
Sacramento, California 95816
916-931-1965

SAN FRANCISCO OFFICE
1 Sansome St. Suite 3500-11
San Francisco, California 94104
650-651-5006

MIAMI OFFICE
11900 Biscayne Blvd North
Miami, Florida 33154

EL PASO OFFICE
4600 Alabama St #C
El Paso, Texas 79930
(915) 201-3865


The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
Follow us
© All Rights Reserved