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Bankruptcy and Car Accident Cases in Hollywood

Bankruptcy can happen at any time – but what happens when they occur while a car accident case in Hollywood is pending? It happens more often than you may think. The effects on your case will depend on whether you are the plaintiff or defendant in the case.

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Plaintiff bankruptcy

The financial pressure of a traffic accident in Hollywood and other communities can be devastating. The costs of medical care are high and in many cases injured drivers must miss work time, which can affect income. Property damage also needs to be considered. While legal claims and insurance is meant to help offset these costs, settling a claim can take a long time – months or even years in some cases.

In the meantime, bills can pile up. If an injured driver was already in debt or facing financial uncertainty before the crash, the collision may push them into genuine financial distress. If you are unable to pay the bills or have collection companies calling you, you may want to file for bankruptcy to get some relief.

Unfortunately, filing for bankruptcy can affect your case. If you file for Chapter 7 bankruptcy, for example, you may find that any judgement made in your favor is given to debtors to pay for your debts. Filing for Chapter 13 bankruptcy can stop collection calls and can allow you to keep any settlement, but can still affect your case.

Before filing for bankruptcy, talk to your personal injury attorney in Hollywood or your community. Your attorney understands the financial pressure plaintiffs face and can offer advice. If you do need to file for bankruptcy, an attorney can guide you through the process so your settlement is protected.

Ideally, look for an attorney who can handle both your personal injury case and understands bankruptcy law. Flaxman Law Group, for example, has services for plaintiffs seeking bankruptcy and has also helped many plaintiffs with car accident claims, so we understand both practice areas.

Defendant bankruptcy

If you have been in a car accident and file a claim against the at-fault driver, you may find the defendant in your case files for bankruptcy, especially if he or she was driving uninsured. It can be upsetting to find out that someone caused your injuries and is now filing for bankruptcy to avoid paying for your costs.

There are remedies available, however. Your attorney may be able to file an adversary action with the bankruptcy court. This would prevent the bankruptcy from proceeding until your case was settled, ensuring you would not lose out on the chance of securing compensation. Depending on the specifics of your case, your attorney may also have other options in your situation.

If you have been injured in a car accident and need to file for bankruptcy or are worried the at-fault driver will file for bankruptcy, it’s important to immediately speak to a personal injury attorney with practice in both areas of law. Bankruptcy filings can affect your case, so contact Flaxman Law Group today for a free and honest assessment of your situation.