Legal Question in Personal Injury in California

Can I still pursue the insurance company

I was in a serious car accident a year ago. The person that hit me has insurance but his insurance company did not look into how serious my accident was (C-2 fracture in two places) and originally offered me only $3,500. When their client was notified that I was suing, his insurance company offered me full policy. Since his insurance company did not protect their client, my attorney said we are going to try and force the insurance company to open their books so we filed a law suit against the person that hit me. That person has now filed a Chapter 7 bankruptcy. My attorney says that since he filed we can only collect his policy limit and his insurance company is now off the hook and we can't go after the insurance company. Is this true?

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