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

UPDATED: Apr 9, 2012

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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


DRichard White / MoKan Personal Injury Group

Answered 10 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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