What Happens if the Person Who You Are Suing Files for Bankruptcy?

Categories: Injury Blog


After an injury, you may sue the responsible party for compensation. Your damages will often cover things like medical costs (past, present, and future), lost wages, and pain and suffering. The defendant whom you are suing may already be in debt, or may not have enough assets to cover the compensation awarded to you in your claim. To get out of that debt, the defendant may file for bankruptcy. This is nothing to be concerned with, as even if the at-fault party files for bankruptcy protection, that person’s insurance company is still obligated to cover the loss.

An Attorney Investigates First

This is often why an attorney will first investigate the potential defendant before filing a personal injury claim. If the attorney finds that the other party does not have insurance, he or she will likely not pursue the claim, as the chances of getting any real compensation directly from the at-fault party is almost impossible.

Other Parties

If the lawsuit involves other parties, you may still be able to file your claim against those parties to collect your compensation. For example, if your accident involved an employee and employer, but there was also a mechanical defect on the vehicle that caused the accident, and you filed a suit against the employer (who then filed bankruptcy), you still may have a claim against the manufacturer of the faulty vehicle component.

Speak with a Personal Injury Attorney First

While this is a frustrating situation, you are not without options. Explore your options for compensation and have your case assessed for viability by meeting with Jeffrey Harlan Penneys, Esq. today. Schedule a consultation now by calling 800-InjuryLaw (800-465-8795), or on my cell at 215-771-0430 or filling out our online contact form.