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Bankruptcy Law/auto accident affecting chapter 7

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Expert: - 3/14/2009


Question
recently filed for chapter 7 and was discharged; included my car and car accident during filing. Just got a letter that i'm being sued for the car accident. What is my next step? I've already gone through the whole bankrupty proceeding all by myself without a lawyer and it came out fine, except for this latest thing.

Answer

Leon Bayer
Congratulations on completing your bankruptcy. It's very hard to do all by yourself.

I generally can't answer a question like yours, because I don't have the opportunity to review all the papers and speak with you. Because of that, there can be a risk of overlooking something. I do advise you to consult a good local attorney immediately. However, what I can do is provide you with some discussion points for you to raise when you meet with an attorney. An attorney who has the actual opportunity to meet with you and review all the papers is the only person who can advise you. Please go see a lawyer immediately. Your case has gone past the point where this is no longer a "do-it-yourselfer."

Any attorney you meet with will probably recommend that you notify your insurance company, if you had coverage. In addition, I would expect your attorney to notify the plaintiff's attorney immediately that this claim was listed in the bankruptcy and (hopefully) discharged. If you had insurance, your lawyer will probably demand that your carrier tender a defense. If you have insurance, the plaintiff has the right to proceed with the case solely for the purpose of ultimately collecting from your insurance company. Whether you had insurance or not, it would be desirable to have a written agreement with the plaintiff that they are not seeking to enforce any recovery against you personally, and that any award will be recovered only against your insurance proceeds or against any uninsured motorist coverage in favor of the plaintiff. Also, you and your lawyer should discuss whether or not to file an answer or other response to the lawsuit. Unless the lawsuit is limited to recovery of insurance proceeds, you may be able to assert that the prosecution of the lawsuit is a serious violation of your bankruptcy discharge, and you might consider possibly reopening the bankruptcy case to sue the plaintiff.

I do hope this mess is quickly resolved for you.



Please be guided by what your own attorney recommends. For the benefit of other readers who want some general information on bankruptcy, they can read my Bankruptcy Guide at  http://www.debt-relief-bankruptcy.com/guide-new.asp

Los Angeles Bankruptcy Lawyer Leon D. Bayer

Expertise

Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/

Experience

Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.

Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.

Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.


Education/Credentials
B.A., J.D.

Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.

Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.

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