Q: How do i pursue action against auto body shop that cashed insurance check and has now filed bankruptcy
My car was involved in an accident in Sept and went to a insurance agent referred shop. The shop owner gave the runaround about waiting for parts for two months. Finally the shop owner said he had 95% of parts and would work on the car. The next month the owner claimed his shop was closing. Fast forward, the end of the month the shop closed and I retrieved my vehicle in the same wrecked condition. However, the shop owner cashed the almost 10k check, written from the insurance company, “returned the parts” and wrote the check back to the insurance company and that check has now bounced. The shop owner has now declared bankruptcy. My insurance company is claiming they fulfilled their responsibility by paying the shop owner. What do I do? My car is still not fixed and I am now incurring debt trying to maintain a rental car and other expenses since my accident in September. Please help!
A: Since he has now filed for bankruptcy, you will need to pursue the matter through the bankruptcy court. I recommend that you consult a bankruptcy attorney to determine whether a proof of claim needs to be filed, to get you on the list of creditors, etc. Be aware that you will probably not receive anywhere near the amount to make you whole, if you receive anything at all. Do not make the mistake of getting your hopes up.
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