Legal Question in Personal Injury in New Jersey

Re: Belly-up

In most cases involving a bankrupt insurance company, or bankrupt re-insurer, the case will experience significant delays. In most instances the claim is paid by the liquidation bureau, although often at a discount. However, every instance is different. Make sure you provide any notice of claim forms you receive to your attorney. You should make sure your attorney has dealt with this situation before. If he or she wasn't able to answer this question for you, you may need to reexamine your representation. Good luck.

Re: Belly-up

In most scenarios where an insurance company goes bankrupt, the NJ State Liquidation Bureau will step into the shoes of the insurance company and will do everything (including pay money) that the insurance company would have done.

However, since the State is taking over every claim from the insurance company it will significantly extend the time that your case takes to resolve.

Also, if your case ultimately settles (rather than going to a jury verdict), the Liquidation Bureau generally pays pennies on the dollar compared to what a private insurance company would pay.

If you have any more questions feel free to call me at (877)692-5291.

Re: Belly-up

Be sure to remind your attorney to file a "Proof of Claim" - an official bankruptcy form in the bankruptcy court where the insurance company is filing bankruptcy. That way your claim is clearly documented in the bankruptcy case.