Victims of serious accidents can be incapacitated at hospitals for weeks or even months. Even with medical insurance, hospital bills, prescription medications, surgeries, and rehabilitation costs can quickly add up. This often makes life extraordinarily burdensome for victims. Unfortunately, winning a large personal injury verdict does not always guarantee that a victim will collect a payout from the liable party. In some cases, a defendant may lack adequate financial resources to pay the judgment and file for protection under bankruptcy.
What Happens If The Defendant Files For Bankruptcy?
Defendants, such as municipalities and large corporations, tend to have deep enough pockets to satisfy large judgments and settlements. However, some defendants who cannot afford to pay millions of dollars may decide to file for bankruptcy. While most personal injury lawsuits are tried under state law, bankruptcy is a federal matter.