Q&A: Driver at Fault Filed for Bankruptcy

andrea-coit-smby Andrea Coit

Q: I was in an accident and filed a lawsuit against the driver at fault.  He has now filed bankruptcy.  Is my claim lost?

A: Probably not. Filing bankruptcy does impose an automatic stay on all lawsuits against the filer and may result in a complete discharge of your claim against him. However, the insurer responsible for that claim remains liable up to the extent of insurance available. So, if the driver had insurance at the time of the accident that provided coverage for your claim, your lawsuit will continue after the bankruptcy court grants your claim relief from the automatic stay. Thus, with the assistance of an attorney, you may be able to collect damages at least up to the extent of the insurance coverage.

 

Originally published in the Portland Business Journal.