What are the consequences for your personal injury claim if the opposing party goes bankrupt? And what if you yourself face financial distress due to injury? This article discusses the combination of personal injury and insolvency with a focus on Westland.
Bankruptcy of the Liable Party
If the person or organization that caused your injury goes bankrupt, this can affect your claim.
Different Scenarios
| Scenario | Impact | Possible Step |
|---|---|---|
| Private individual with liability insurance | Direct claim against insurer | Submit claim to insurer |
| Employer with business liability insurance | Direct claim against insurer | Submit claim to insurer |
| Company without coverage | Concurrent claim in bankruptcy | Report claim to trustee |
| Damage caused by motor vehicle | Mandatory motor vehicle liability insurance | Claim against WAM insurer |
Direct Claim Against Insurer
With a liability insurance policy, as a victim you can file a direct claim against the insurer (Article 7:954 BW).
Advantages of Direct Action
- Independent of insured party's bankruptcy
- No competition with other creditors
- Insurer pays directly to victim
- No dependence on trustee
Limitations of Direct Action
- Limited to insured sum
- Damage exceeding coverage not covered
- Policy conditions may contain exclusions
No Insurance Present
If the liable party has no insurance, your claim becomes a standard claim in the bankruptcy.
Step-by-Step Plan
- Submit claim to trustee
- Assessment by trustee and inclusion on list
- Verification meeting
- Possible distribution if sufficient assets
Expected Distribution Percentage
Concurrent claims often yield only a small portion (0-10% is common). Personal injury claims have no priority over other debts.
Guarantee Funds as a Solution
In specific cases, guarantee funds can provide assistance for personal injury damage.
Relevant Funds
| Fund | Application | Damage Coverage |
|---|---|---|
| Motor Vehicle Guarantee Fund | Uninsured or unknown vehicle | Full damage compensation |
| Crime Victims Compensation Fund | Victim of violent crime | Limited to maximum amounts |
Financial Difficulties Due to Injury
Injury can lead to reduced income and financial stress, sometimes resulting in debt or a WSNP trajectory.
Protection of Damage Payments
A personal injury compensation has some protection:
- Pain and suffering compensation: not subject to attachment (Article 475c Rv)
- Material damage: subject to attachment
- WSNP: pain and suffering compensation can remain outside the estate after judicial decision
Debt Restructuring (WSNP) and Personal Injury
In a WSNP trajectory, there are specific rules for personal injury payments.
Key Points
- Report ongoing matters to the administrator
- Pain and suffering compensation can remain outside the estate
- Material compensation generally falls into the estate
- Designate damage payments for clarity
Advances and Risk of Attachment
Creditors can attach advances you receive during the handling of your claim.
Practical Advice
- Request splitting of advances into pain and suffering and material damage
- Place pain and suffering compensation in a separate account
- Seek legal advice for financial problems
- Consider protective administration as an option
Summary
The combination of personal injury and bankruptcy is complex. Key points:
- Insured opposing party: direct action against insurer provides certainty
- Uninsured opposing party: limited recovery possible
- Pain and suffering compensation is protected against attachment
- For financial problems in Westland: seek timely help via, for example, the Juridisch Loket Westland
Frequently Asked Questions about Personal Injury
What happens to my claim in bankruptcy?
If the opposing party is insured, you can often claim directly from the insurer. Without insurance, your claim becomes concurrent in the bankruptcy.
Is pain and suffering compensation protected against attachment?
Yes, pain and suffering compensation cannot be attached according to Article 475c Rv.
What if I am in WSNP myself?
Pain and suffering compensation can remain outside the estate, but material damage compensation usually falls into the estate. Report ongoing matters to the administrator.
Where can I get help in Westland?
The Juridisch Loket Westland offers free legal advice and can refer you to specialists.