# Insurance Companies Filing for Bankruptcy | Attorney Brian White **Table of Contents***[*Expand*]* 1. What Happens When an Insurance Company Files Bankruptcy? 2. What is an Insurance Guaranty Association? 3. Can I Sue the At-Fault Driver for a Car Accident? 4. How Much is My Car Accident Claim Worth? 5. Contact the Houston Car Accident Lawyers at Attorney Brian White Personal Injury Lawyers For Help ![Car Insurance Companies Filing for Bankruptcy - How Do I Recover?](https://attorneybrianwhite.com/wp-content/uploads/2020/12/iStock-915254108-300x199.jpg) If another driver is responsible for causing your [car accident](https://attorneybrianwhite.com/houston-tx/car-accident-lawyer/), you can recover compensation for damages and injuries by filing an insurance claim with the driver’s liability insurance carrier. [Texas](https://www.texas.gov/) requires that all drivers carry [minimum amounts of liability coverage](https://www.tdi.texas.gov/pubs/consumer/cb020.html) if they cause a car accident. Liability insurance compensates accident victims for damages caused by an insured driver. The amount you may receive depends on the facts in your case. The [types of damages](https://attorneybrianwhite.com/blog/types-of-damages-available-in-personal-injury-cases/) in a car accident claim may include financial losses, such as [medical bills](https://attorneybrianwhite.com/blog/how-to-handle-your-medical-bills-after-a-car-accident/) and [lost wages](https://attorneybrianwhite.com/faqs/can-i-be-reimbursed-for-lost-wages-after-a-car-accident/). You may also recover compensation for your [pain and suffering damages](https://attorneybrianwhite.com/faqs/can-i-be-reimbursed-for-lost-wages-after-a-car-accident/).  However, insurance companies are businesses. They operate to make a profit. Unfortunately, some insurance companies fail.  What happens when an insurance company files bankruptcy? Can an accident victim still recover compensation for injuries and damages? ## What Happens When an Insurance Company Files Bankruptcy? The type of bankruptcy case filed determines what happens to the insurance company. A Chapter 7 bankruptcy case is a liquidation bankruptcy. A bankruptcy trustee sells the company’s assets and uses the money to pay the company’s creditors. In a Chapter 11 bankruptcy case, the insurance company retains possession of its assets. It proposes a plan of reorganization that outlines how the company intends to handle its debts to continue operating.  In most cases, creditors in a bankruptcy case do not receive full payment of their debts. Creditors must file a proof of claim with the bankruptcy court for their debts to be considered for payment. Potential creditors may want to consult a bankruptcy attorney immediately to determine whether they need to file a proof of claim. Bankruptcy law is complicated, and failure to file claims or take other action to protect a debt could result in the claim being denied. However, car accident victims may recover compensation for their personal injury claims by contacting a [Texas insurance guaranty association](https://www.tdi.texas.gov/pubs/consumer/cb006.html). For a legal consultation call [(713) 500-5000](tel:+17135005000) ## What is an Insurance Guaranty Association? If an insurance company goes out of business or cannot pay its claims, a guaranty association helps pay policy claims. In Texas, automobile insurance policies are handled by [The Texas Property and Casualty Insurance Guaranty Association](https://tpciga.org/). Most insurance companies that do business in Texas are required to join the association.  It is essential to understand that there are claim limits. An accident victim might not receive compensation for the full value of damages from an insurance guaranty association. Also, some companies are placed in receivership, which means you must file claims with the receiver. ## Can I Sue the At-Fault Driver for a Car Accident? Texas is an at-fault state for car accident claims. You may file a personal injury lawsuit against the at-fault driver to recover compensation for your injuries and damages. However, filing a lawsuit does not guarantee payment of the claim. If the at-fault driver does not have the assets or income to pay a judgment, you might not receive payment. Therefore, it is important to consider all sources of payment for a car accident claim. A personal injury lawyer investigates all sources of income. In a case involving a bankruptcy insurance company, the lawyer pursues claims through the bankruptcy court for payment of accident claims. He also investigates whether the insurance guaranty association can pay the claim. If the at-fault driver has sufficient income or assets to pay a claim, the attorney may file a personal injury lawsuit. The key is to ensure that all sources of compensation are pursued to give you the best chance of recovering money for a car accident claim. Because bankruptcy law and insurance law is complicated, it is best to seek legal advice as soon as possible to protect your best interests and legal rights. [Click to contact](/contact-us/) us today ## How Much is My Car Accident Claim Worth? Numerous factors impact the value of a car accident claim. Some factors that determine how much your car accident claim is worth include: - The type and severity of your injuries. Cases involving [catastrophic injuries](https://attorneybrianwhite.com/houston-tx/catastrophic-injury-lawyer/) generally have a higher value - The amount of insurance coverage available for the claim - Whether you could be partially at fault for the cause of the car accident - The strength of the evidence in your case - Whether you waited too long to seek legal advice and the [statute of limitations](https://attorneybrianwhite.com/blog/understanding-the-statute-of-limitations-and-your-personal-injury-case/) has expired  - The total of your economic damages and financial losses - Whether you sustained a permanent impairment or disability because of the accident Before you can determine the value of a personal injury claim, you must complete medical treatment. It is impossible to know the severity and extent of your injuries and damages until your doctor determines whether you made a complete recovery or you have permanent impairments because of the car crash. Complete a [Case Evaluation Form](/contact-us/) Now ## Contact the Houston Car Accident Lawyers at Attorney Brian White Personal Injury Lawyers For Help Our offices Houston — Greenway/Upper Kirby 3120 Southwest Freeway, Suite 350 Houston, TX 77098 Open 24 hours daily Call [(713) 364-1466](tel:+17133641466) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%203120%20Southwest%20Freeway%2C%20Suite%20350%2C%20Houston%2C%20TX%2077098) Houston — East Freeway 11811 East Freeway, Suite 630-06 Houston, TX 77029 Open 24 hours daily Call [(713) 609-1893](tel:+17136091893) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%2011811%20East%20Freeway%2C%20Suite%20630-06%2C%20Houston%2C%20TX%2077029) Houston — South Loop 2600 South Loop West, Suite 293 Houston, TX 77054 Open 24 hours daily Call [(713) 281-4904](tel:+17132814904) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%202600%20South%20Loop%20West%2C%20Suite%20293%2C%20Houston%2C%20TX%2077054) Houston — Katy Freeway 11511 Katy Fwy, Suite 515 Houston, TX 77079 Open 24 hours daily Call [(713) 909-7537](tel:+17139097537) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%2011511%20Katy%20Fwy%2C%20Suite%20515%2C%20Houston%2C%20TX%2077079) Houston — Clear Lake 1300 Bay Area Blvd, Suite B268 Houston, TX 77058 By appointment only Call [(936) 508-2854](tel:+19365082854) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%201300%20Bay%20Area%20Blvd%2C%20Suite%20B268%2C%20Houston%2C%20TX%2077058) The Woodlands 1776 Woodstead Ct, Ste. 203 The Woodlands, TX 77380 By appointment only Call [(281) 843-9777](tel:+12818439777) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%201776%20Woodstead%20Ct%2C%20Ste.%20203%2C%20The%20Woodlands%2C%20TX%2077380) Champion Forest (Cypress) 4606 FM 1960 Rd W, Ste. 444 Houston, TX 77069 By appointment only Call [(281) 843-9777](tel:+12818439777) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%204606%20FM%201960%20Rd%20W%2C%20Ste.%20444%2C%20Houston%2C%20TX%2077069) --- ### About the Author Brian White ![About the Author Brian White](https://attorneybrianwhite.com/wp-content/uploads/2024/12/brian-white-houston-personal-injury-lawyer-300x300.jpg) [Brian White](https://attorneybrianwhite.com/about/our-attorneys/brian-white/) earned his J.D. from South Texas College of Law in Houston and is licensed to practice in Texas. He is a [Board-Certified](https://attorneybrianwhite.com/resources/brian-white-is-board-certified-in-personal-injury-trial-law/) Personal Injury Trial Lawyer. Dedicated to giving back, he actively supports local charities and [community initiatives](https://attorneybrianwhite.com/about/community-involvement/). [Client testimonials](https://attorneybrianwhite.com/about/testimonials/) highlight Brian’s compassion, open communication, and dedication to achieving the best outcomes for those he represents. 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The pressure placed on the back and spinal column during a collision can [![What You Should Know About Geico Insurance Claims in Houston](https://attorneybrianwhite.com/wp-content/uploads/2023/12/What-You-Should-Know-About-Geico-Insurance-Claims-in-Houston-300x200.jpg)](https://attorneybrianwhite.com/blog/what-you-should-know-about-geico-insurance-claims-in-houston/) [What You Should Know About GEICO Insurance Claims in Houston](https://attorneybrianwhite.com/blog/what-you-should-know-about-geico-insurance-claims-in-houston/) GEICO Insurance Company is Texas's third largest insurer for passenger automobile insurance policies. Therefore, if [![What Happens If My Insurance Claim Wasn’t Enough to Cover the Costs of My Injuries?](https://attorneybrianwhite.com/wp-content/uploads/2021/02/iStock-1029711532-300x200.jpg)](https://attorneybrianwhite.com/blog/handling-a-car-accident-claim-with-state-farm/) [Handling a Car Accident Claim With State Farm](https://attorneybrianwhite.com/blog/handling-a-car-accident-claim-with-state-farm/) State Farm is the largest auto insurer in the U.S. Across America, State Farm writes about 17% of all auto insurance [![Whiplash, Disc, and Joint Injuries: Common Consequences of a Car Accident](https://attorneybrianwhite.com/wp-content/themes/brian-white/assets/app/img/default-thumb.webp)](https://attorneybrianwhite.com/blog/whiplash-disc-and-joint-injuries-common-consequences-of-a-car-accident/) [Whiplash, Disc, and Joint Injuries: Common Consequences of a Car Accident](https://attorneybrianwhite.com/blog/whiplash-disc-and-joint-injuries-common-consequences-of-a-car-accident/) Our bodies were never meant to deal with the movement and forces involved in a car accident.  Upon impact, the car --- Source: https://attorneybrianwhite.com/blog/insurance-companies-filing-for-bankruptcy/