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Maverick
Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 5767
Experience:  20 years of professional experience
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I rented a car from a car rental company (say, company A).

Customer Question

I rented a car from a car rental company (say, company A). I also bought Rental Liability Insurance from them. I had a minor accident which was my fault. When the other driver claimed damages from my car rental company, they did not pay them. Now, both me and the car rental company have been sued by the other driver.

The car rental company says that it has filed for Chapter 7 bankruptcy and hence they are unable to pay. They are also refusing to provide a legal defense for me.

What are my options? Is it okay if I file an general answer to the court, denying the allegation and explaining the situation? Or should I file a cross-complaint in the court against the car rental company?
Submitted: 7 years ago.
Category: Bankruptcy Law
Customer: replied 7 years ago.
Relist: I still need help.
Expert:  Maverick replied 7 years ago.

You will need to file an answer and a cross claim both. A general answer is usually not sufficient. You will have to "admit" or "deny" or state that "you do not have sufficient facts to admit or deny" each and every allegation / sentence of plaintiff's complaint against you and then you will have to draft a cross claim against the car rental company. However, if the car rental company has filed chapter 7 - then you first have to apply to the BK court to lift the automatic stay before you can sue them and the plaintiff will have to do the same before they can continue their suit against them. You also may want to file a proof of claim in the BK since you are now a creditor vis a vie the car rental co.

 

The proof of claim form is here:

http://www.uscourts.gov/bankform/formb10new.pdf

 

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