Roughly 3 million people are injured annually in car accidents across the U.S. Meanwhile, there are approximately 800,000 bankruptcies filed every year, according to the Administrative Office of the U.S. Courts. In some instances, people who cause car accidents soon thereafter file for Chapter 7 bankruptcy. Except in cases of drunk driving injuries, a Chapter 7 bankruptcy can effectively releasing a negligent driver from the obligation to pay for personal injuries they caused prior to the bankruptcy filing.
However, as a recent case weighed by the Alabama Supreme Court illustrates, that does not mean injured crash victims are without options. Although this is an out-of-state case, there is the potential for similar cases to arise in Florida, and justices are known to look to sister court rulings when weighing similar legal issues.
According to court records, a husband and wife (plaintiffs) were injured when their vehicle was rear-ended by a vehicle driven by defendant driver. Plaintiffs sued defendant, alleging her negligence caused the crash and their injuries. Their complaint also named their own auto insurer, as they sought to recover underinsured motorist (UIM) benefits. Continue reading