Q: I was a pedestrian in Brooklyn when I got hit by a car exactly a month later the insurance filed for bankruptcy
The company already finished with the bankruptcy I signed settlement agreement for a certain amount already 3 months ago what is taking so long
A:
Bankruptcy can be a long and sometimes frustratingly-slow process for creditors. However, bankruptcy is guided by a complex mix of federal bankruptcy law, bankruptcy and local rules and other areas of state and federal law. In short, it is complicated and often has very important deadlines that may affect your rights as a creditor. I would highly recommend you seek legal counsel to protect your financial and legal rights.
Many firms, mine included, offer free consultations where you may be able to understand where in the process the case is at. Best of luck.
Tim Akpinar and Timothy Denison agree with this answer
A:
Insurance companies are not eligible for bankruptcy relief, by the express provisions of the Bankruptcy Code.
Instead, when an insurance company is no longer financially viable, it files an insolvency proceeding in the applicable state courts, which vary from state to state.
To understand your rights, as a claimant, consult with a NY licensed attorney with experience in such matters, at your earliest opportunity.
Tim Akpinar and Timothy Denison agree with this answer
A: You may need to hire a bankruptcy attorney to protect your rights in bankruptcy court if the insurance company filed. The filing is what is holding up your settlement check, thus making you a creditor in bankruptcy.
Tim Akpinar agrees with this answer
A: As my colleagues correctly advise, seek consultation with counsel. The timeline is not indicated here, or whether you reached settlement through negotiation or through trial. Regardless of whether the carrier's outstanding claim liabilities are picked up by a state-guaranteed entity or fund, let the attorneys you contact know whether or not the matter had been placed into suit. Good luck
A: If the insurance company which was going to pay your settlement filed for bankruptcy or went under, you will have needed to file a claim with the NY Liquidation Bureau which acts as a receiver for insolvent insurance companies, https://www.nylb.org/home.htm Although the NY Liquidation Bureau will honor the settlement (assuming a claim was timely filed with the Bureau), it will take a longer time to make payment.
Tim Akpinar agrees with this answer
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