Expert: Terry Leeders - 10/6/2007

Question
My 6 year-old daughter was hit by a SUV on May 25, 2006.  The woman who hit her only had 10,000 coverage on her insurance.  My daughter's medical bills are over 20,000.  We went to mediation and were offered 10,000.   We want to file a civil suit against the woman who hit our daughter.  Our attorney is advising us to take the 6,000 (after his 4,000 fee) because if we file a civil case (which he has also stated we would win) and our daughter got a money judgement the woman would just file bankrupcy and our daughter would get nothing.  The woman who hit her has a home, a good job, a new car, her husband is a firefighter.  I am having a hard time making a decision about whether to accept the 6,000 or file a civil suit on behalf of my daughter.  I want to do what is right for her.  I feel as thought this attorney just wants to collectd his 4,000 and be done.   Can you help?

Lisa Leader

Answer
As for bankruptcy, if the woman files chapter 7, and assuming there was no DUI/Drugs involved, then your daughter's claim would be discharged if there are no un-exempt assets.

If the lady files a chapter 13, you will get the same percentage as all other unsecured creditors (anywhere from 10-100%)

You will need to weigh that risk in making your decision.