Bankruptcy is a legal process that allows you to get a financial fresh start when you are running into trouble. However, bankruptcy should not be taken lightly. Many people compare it to getting a divorce, where you should only use it when you've run out of options and it's the only way to make things right. This may leave you wondering what situations are appropriate to choose bankruptcy since it can have a huge impact on your finances that will last for years to come.
When a person has been seriously injured because of a driver's reckless behavior, they may envision filing a lawsuit and being awarded a large sum in court. In reality, these types of cases are nearly always settled out of court. The insurance company is not obligated to pay more than the policy's maximum, and the driver might not have enough assets to make suing worthwhile. Nevertheless, hiring car accident lawyers is advisable if the insurer disputes the claim or offers unreasonably low compensation.
When you pass away, your assets will undergo a process known as probate and your estate will be responsible for paying for any outstanding debts. However, even after your debt, there are some ways that bankruptcy might affect your estate. This is something you will want to bring up with your attorney.
The Rights of the Estate
Your estate does not have the right to file for bankruptcy on your behalf.