MIB - Bankruptcy Claim

jpatterson94

I was involved in a personal injury case whilst uninsured unfortunately - the case went to court and the driver was awarded a sim of money from the MIB. Subsequently they have now passed the debt to Weightmans solicitors who are acting on their behalf. 

I was made bankrupt in June 2018. The actual personal injury itself occurred one month prior in May 2018. However when I went to court I was still considered bankrupt - I would love some help clarifying wether my bankruptcy has some validation as wether I need to pay weightmans/MIB. The sum of money in question exceeds 6 figures.

jpatterson94

EDIT - I wrote this in a real rush! I should have said — I was the driver, the claimant was awarded the money from MIB.

ToxtethO'Grady

So the court judgement happened after your bankruptcy start date and the court was made aware you were insolvent?

Any debts incurred after your bankruptcy started may be included if the OR knew about it when you went bankrupt or when it was incurred. However personal injury claims are a debt you still have to pay after bankruptcy unless the court decides because you are insolvent you can't.

40.181 A liability in respect of personal damages not released on discharge

The liability of a bankrupt to pay damages to a third party in respect of a personal injury claim is a provable debt in the bankruptcy but the bankrupt is not released from the debt on discharge unless the court so directs [note 18].

jpatterson94

Correct judgement was after/whilst I was bankrupt.
the claimant was paid in full by the motor insurance bureau, they’re now 2 years later after the money from me via Weightmans solicitors 

MEM62

The injured in this case is entitled to compensation for their injuries. This would usually have been covered by your insurance but, as you had no cover, the responsibility falls to you.  (The MIB may have paid out but are entitled to recover the monies where the driver has been identified)  This debt is one of the few that is not covered by bankruptcy and you will therefore be on the hook for it unless a court decides otherwise.       

Sandtree

Liabilities for injury are excluded from being able to be included in bankruptcy, the right for the wronged party to be compensated is greater than the right for someone to have a fresh start. What I've never known for sure is if the fact there is a middleman (MIB in this case) changes that at all. 

Minkym00

The point here is that, as the incident occurred 1 month before you became bankrupt, is this a contingent liability i.e. a liability that was owed at the point the incident occurred. This may be arguable, you need to seek legal advice. 

ToxtethO'Grady

jpatterson94 said:

Correct judgement was after/whilst I was bankrupt.
the claimant was paid in full by the motor insurance bureau, they’re now 2 years later after the money from me via Weightmans solicitors 

You do need legal advice.

Things to clarify, it appears you only answered the first part of my question. The other part was did the court know you were currently bankrupt when the judgement was made?

Yes - if the judgement did not state you couldn't pay because you were insolvent then you owe it even after the BR

No - not much you can do with it, as it stands, the court made the judgement on the information available at the time

Seek legal advice, you can get 20-30 minutes advice free, be aware you may not be eligible for legal aid and could end up with costs fees and charges to pay if you take it further

Techy_girl

jpatterson94 said:

I was involved in a personal injury case whilst uninsured unfortunately - the case went to court and the driver was awarded a sim of money from the MIB. Subsequently they have now passed the debt to Weightmans solicitors who are acting on their behalf. 

I was made bankrupt in June 2018. The actual personal injury itself occurred one month prior in May 2018. However when I went to court I was still considered bankrupt - I would love some help clarifying wether my bankruptcy has some validation as wether I need to pay weightmans/MIB. The sum of money in question exceeds 6 figures.

Hi -Any update regarding the situation?

flipflopflo

The OP hasn’t been back here in a year so I don’t think we will get a resolution.