Legal Question in Bankruptcy in California
auto accident
i declared bancruptcy in august 2001. one of the creditors was an auto insurance company, i was involved in a car accident and i was at fault and i had no insurance. i was driving my brothers car which at the time he was paying of from a car dealer and had insurance, but his insurance co. doesn't want to pay because he was not driving. now the insurance company is trying to sue me and my brother and we have 30 days to answer for the summons. what can he and i do to clear the lawsuit.
2 Answers from Attorneys
Re: auto accident
The party attempting to obtain a judgement against you and your brother is an ultimate creditor.
Under the Bankruptcy Code, the moment that you file a petition for Bankruptcy, an "automatic stay" is in place.
This procedure places a hold on all of your creditors from trying to collect from you until the Bankruptcy proceeding has been concluded.
Please shoot me an e-mail if I can be of any furhter assistance.
Khach "Catch" Akhkashian
Re: auto accident
If you received a discharge in your bankruptcy, and listed the parties involved in the accident as creditors, then that obligation was discharged. You should have your attorney send a letter to the insurance company notifying them that the filing of the lawsuit is contempt of the bankruptcy court discharge order.
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