Legal Question in Bankruptcy in North Carolina

Insurance policies cover defense as well as indemnity. It would be unusual for the insurance company to make payment and not take a release of its insured, your son. If the release was taken, it should be dismissed on proof of "accord and satisfaction". Also, it appears that the suit was brought too late and the suit should be dismissed under the statute of limitations. In all events, the insurance company should be notified of the suit ASAP with registered return receipt mail. If they do not hire a lawyer to defend the suit, then your son should consult a lawyer to make an appearance. There are several ways to settle the matter that do not involve a settlement or judgment against your son. He does have to act and file an answer prior to the 30 day answer time. If it is too late and/or he wants to file bankruptcy for this and other valid reasons, this debt would be discharged unless it involved a DUI.