Car Accident... Other person's insurance wants to settle.

[cdr777]

My wife was in a minor fender bender last week. She got a call from the other person's insurance adjuster yesterday wanting to meet with her to compensate her for pain and suffering. She had a concussion and whiplash. The car had minor scratches from the collision, so the payout should not be very significant.

Are there any Bankruptcy issues we should be concerned with? Our trustee is D*C*K* here in Tucson.

Thank you!

[kawh]

If I understand you, your wife was injured and it's way too early to know how much work she'll have to miss, or just how much would compensate her. Sorry I don't know much about BK law for this, except I have heard you're allowed to keep anything awarded up to $50k.

[cdr777]

Yep, she is supposed to meet with the adjuster today to settle and get a check, but I'm concerned that there could be some issue with our bankruptcy. Our Ch 13 hasn't been confirmed yet either.

Could there be any issues?

[ValleYum]

I think it is too early to settle for pain, etc. with a whiplash injury...

Aside from that, have you called your BK attorney?? If I am recalling correctly from prior postings, you have a tough Trustee and this needs to be by the books. (PS: I edited her name out more to protect you... but to remove her proper name)

[frogger]

The adjuster is wanting to pay really quickly. Anytime an insurance company breaks out the checkbook that quick, i would err on the side of caution.

A good attorney that knows how to chase an ambulance may be in order.........

[cdr777]

We're going to cancel the appointment with the adjuster and call our attorney. I remember our atty mentioning something about accidents, but I thought he was referring to cases where the car was a total loss and since, at that time, we thought there was still a lien/loan on the car that's where the issue was...

ValleYum, thanks for doing that! I didn't think before I inserted her name!

Thanks everyone for all ur input so far!

[despritfreya]

The claim for injuries is an asset of the estate and is not exempt. 75% of lost wages is exempt. Propety damage claim can be used to fix property of the estate. Post petition medical bills should be paid by insurance up to policy limits. Discuss with your bk attny before proceeding further.

Des.

[cdr777]

Good info Des! Thank you! Waiting for our atty to call us back right now..

[LadyInTheRed]

Definitely consult with a personal injury attorney. Maybe your BK attorney knows one he can refer you to. It's way too early to settle a personal injury claim.

[keepsmiling]

Stupid q but I am gonna ask it anyway.... is there any point in settling if the tt is going to take it all anyway?
What is the amount of your claims?
Might you get more than that and be over and done with the bk?

[Lissy]

Definitely do not settle just yet! You have no idea if your wife could have long term medical issues from her concussion and/or whiplash. Give it time because if she does and you settle, YOU will have to pay for any treatment she needs. I know they can be persistent, but just tell them you are not settling until you know your wife will not have any more issues. Also, I don't know if your wife went to the hospital, but if she did, you could have bills from them coming in for several weeks, ones you don't even know about yet. How can you settle if you don't know what your total medical bills will be?

This happened to me 3 weeks after I filed my BK. A woman t-boned me and rolled my car over. I was not seriously hurt, but the car was totaled. Her insurance company called me nonstop trying to get me to settle and I finally told the adjuster I would let her know when I was ready. She left me alone for maybe 2 months and then tried again. As far as my BK, I had not even had my 341 yet at the time of my accident. I had to get my TT's permission to buy a new car, so they knew about the accident already when that meeting occurred. They asked me if I planned to sue and I said no. They asked if I was sure, I said yes. They explained to me that any proceeds from a lawsuit would have to go to the TT. They never said anything about a settlement. In the end, the settlement I got was not significant, just enough to cover the portion of my medical bills that my car insurance company didn't cover and replace personal property I lost. My TT did not take it.

But of course, you need to notify your attorney and ask him/her what you should do.

[Reddrocket07]

I was in an accident as well and I have family that work in the insurance business. They are wanting to settle quick to avoid long term/ additional costs. Definitely do not settle yet. You have either a year or two to settle depending on your state law. I would personally wait until your plan is confirmed and your wife's health is cleared before settling. You never know what future medical issues might arise after you settle. So give it some time. I had to ask the court to keep my settlement which went towards a new car.