Can an insurance company come after me if a personal injury suit was settled by bankruptcy trustee?

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Can an insurance company come after me if a personal injury suit was settled by bankruptcy trustee?

I was in an auto accident in 2009 that was not my fault. I was forced to file bankruptcy due to lost wages. Trustee failed to pay insurance subrogation from settlement. Can insurance now come after me?

Asked on April 9, 2012 under Personal Injury, Ohio

Answers:

DRichard White / MoKan Personal Injury Group

Answered 9 years ago | Contributor

Pursuant to your insurance policy and most state laws if the insurance makes certain types of payments on your behalf they become entitled to be reimbursed from any settlement of the incident for which the company expended the money. Considering the same they should have been pay from the settlement however if they were not then there is a question as to whether you properly advised of the insurance claim at the time you had the bankruptcy petition prepared. Even if you did not then at some point prior to the settlement the bankruptcy court should have been notified of the pending claim. If the bankruptcy court was never notified then the claim was not a part of the bankruptcy proceedings and the insurance company has no recause but to seek reimbursement from you. If the bankruptcy court was notified then they would have let the insurance company know that they had to file a claim with the court and if the insurance company failed to do so then it is their lost.


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