We have had people come in for our free, no obligation consultation and tell us they have been injured by a company that is going to file bankruptcy or is in the middle of filing bankruptcy. These people often want to know if they can still file a claim against the company that caused their injury. When this happens we have to do a little investigative work to determine if filing a claim will be financially beneficial.
If the company has insurance then you simply file a waiver with the bankruptcy court notifying them that you are interested in pursuing a claim only against the business’s insurance policy and that you will accept a settlement equal to the insurance limits.
If the company that caused your injury does not have insurance then you file a notice of claim with the bankruptcy court and you become an unsecured creditor. Unsecured creditors come after secured and preferred creditors in the payment hierarchy. They don't have the benefit of claims over company assets, and this means they often receive much smaller amounts if anything at all. When you become an unsecured creditor you are essentially waiting to see if the company has any money left after the secured creditors are done getting paid. It is very likely that you will be able to get a lot of money, if any, from a company going bankrupt if they didn’t have insurance.
If you have any questions about your personal injury case or have been injured by a company that is going bankrupt, please feel free to reach out to us. You can call us at 407-254-4901 or text us at 407-644-4444. We are always happy to offer a no obligation, free consultation to discuss your case with you.