Impact Of Backruptcy On Personal Injury Claim
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.
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.
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.
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