Legal Question in Bankruptcy in New York

our corporation may be facing bankrupsty (chapter 11,12 or 13?), but, meanwhile, we are being sued by an individual for "personal injury".(He fell outside our building). Our insurance company is representing us in the suit. If the company does goes into bankrupsty, what effect or impact will this have on the lawsuit?


Asked on 4/21/11, 10:34 am

1 Answer from Attorneys
Gary Adelman Adelman Matz, P.C.

I am not a bankruptcy attorney, however, I know some general knowledge. In general, once you go into bankruptcy all lawsuits are stayed until there is a Court Order. The insurance company will continue to represent you under the terms of your policy and up to your policy limits. You should seek the advice of a competent bankruptcy attorney, in which I use several, if you need a referral.

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Answered on 4/22/11, 7:22 am


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