Injury Lawsuits and BankruptcyYou get hurt, hire an effective lawyer, file a lawsuit, start negotiating, and then the business or person you are filing the claim against files bankruptcy. This does in fact happen. But with this blog post, you'll know some crucial rules such as the fact that usually bankruptcy does not cancel a personal injury claim and get some strategies for getting your compensation.
Who Files Bankruptcy?
According to legal resource Nolo.com, when a person or business files Chapter 7 bankruptcy, you may lose some rights to your money. Also according to this legal resource, if the business files Chapter 7, and you have a personal injury claim, you have options for getting your money.
How can you get your compensation?
You still have your rights. There is no loophole for a business to be allowed to file bankruptcy and avoid punishment for mistakes. For example, if an insurance company refuses to pay your claim, then attempts to file for bankruptcy, you may be able to intervene in the bankruptcy with some legal help. There is a lot of legalities to understand here, namely whether wrong doing was committed. According to Nolo, this is a malicious behavior which can be open to interpretation.
When should you file your lawsuit?
You should still go ahead and file your lawsuit. There is no guarantee that the bankruptcy will go through. If you file against a business which is still running, typically they simply pay for a settlement which is why settlements are so common in personal injury lawsuits and you can move on. You should therefore file for your claim as soon as you understand your injury.
Will you lose your claim?
This is where the legal process gets complicated. If you won a large lawsuit against a person or entity, they will not always have the option of bankruptcy. For example, bankruptcy can only be filed so often, so if they recently filed, and your injury happened after, they would have to wait years before filing again. That helps you.
You will not always necessarily lose your claim. The best thing you can do is get proper legal representation. An experienced personal injury lawyer is best for situations where you're worried your claim will either fail or never be paid. If you are unsure about the personal injury legal process, or how bankruptcy might affect you in some other way, choose an experienced lawyer. He or she can consult with you, negotiate for you, protect your rights, and protect your future. If you have a defendant wanting a fight, get someone who can help you win the battle.