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law suit

can you claim bankruptcy for a law suit resulting from a auto accident.

person other than my self driving my auto has fender bender only $400. damages to my auto includes labour.

I was found in breach of insurance and was told that claim may include slight whiplash (still in ?) not sure what cost will be but i have no means to pay if claim is proven.

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One Response to “law suit”

A licensed trustee said...

If someone initiates a civil action against you filing bankruptcy will likely stop the law suit, BUT (and this is a very BIG but) the individual suing you has the right to apply to the Court for permission to continue the lawsuit even after you have filed bankruptcy.

In most cases people do not bother – there’s not much point suing someone that has filed bankruptcy, but the possibility is there. The person suing you simply has to convince a Court that there are grounds to believe their debt should survive a bankruptcy. If you were driving without insurance the Court might very well give the person permission to continiue with their law suit.

I suggest you talk to a trustee in your area about the specifics of your situation – the trustee will likely refer you to a lawyer as well, just to make certain you are aware of your options.