Taxi company going bankrupt won't have to pay for my injuries?
(North Charleston, SC)
I was walking along the street and was hit by a taxi. The driver admitted in the police report to being on the phone and distracted at the time. My lawyer says the company is going bankrupt (and has done so numerous times to get away with this sort of thing), and my lawyer is telling me to just file against my own insurance?
I live in South Carolina. Why would my lawyer say this? Can I not go after the driver himself? Why does he want to file against my own insurance company? Won't the taxi company have some kind of asset(s) I can file a claim against? Thank you so much for your time.
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ANSWER for "Taxi company going bankrupt won't have to pay for my injuries?":
Blair (North Charleston, SC):
It is our policy here at ICC not to interfere with the attorney-client privilege. To do so would be entirely inappropriate.
Generally speaking, when a company goes bankrupt, a list of its assets and liabilities are submitted to the court for review. In most cases, the court then appoints a "Trustee" to administer the transition of the company. The trustee then sells off, or otherwise transfers the company's assets in an effort to produce enough cash to pay off creditors.
Because a bankrupt company's liabilities are normally far in excess of its assets, creditors receive pennies on the dollars they are owed by the bankrupt company.
Unless a personal injury attorney has experience in bankruptcy cases, to pursue a personal injury claim against a bankrupt company would probably require a personal injury attorney to retain another attorney with experience in bankruptcy cases.
In most cases, in personal injury cases involving bankruptcy, there just isn't enough money to go around to pay a personal injury attorney, a bankruptcy attorney, a victim’s medical creditors, and the victim. Nonetheless, it may be worth it to have a bankruptcy attorney review your case.
The above is general information. Laws change frequently, and across jurisdictions. You should get a personalized case evaluation from an attorney licensed in your state. Find a local attorney to give you a free case review here, or call (888) 647-2490.
Best of luck,
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