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Debra
Debra, Lawyer
Category: Canada Law
Satisfied Customers: 98007
Experience:  Lawyer
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I have been served a statement of claim. 6mil this weekend,

Customer Question

I have been served a statement of claim for approx. 6mil this weekend, the insurance company said they may not cover the claim as they weren't notified of the accident a yr ago when it happened. I never thought they needed to be notified as I didn't think this was going to happen. Should I contact another Lawyer even tho the insurance companies lawyer said not to? I am terrified and don't know what to do.
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.

Yes you should.

First, you've been told you may not be covered.

Second, unless you have coverage which is that high you need your own lawyer in any event.

You don't need to be terrified as bringing in your own lawyer will make the insurance company think twice about considering denying you coverage.

And the $6 million is going to be nonsense I am sure.

But you do need the insurance to cover you so see a lawyer as soon as you can and you need to do so quickly as someone has to put in a statement of defence.

I am sorry this happened to you.

Customer: replied 1 year ago.
Thank you very much for your reply. In the even that coverage is denied, what the heck happens then? I recognize the business and its assets will be taken, what about the family home? Will I be in debt to the individual for the rest of my life? We aren't wealthy people, and don't have a hole lot of equity in our home yet.
Expert:  Debra replied 1 year ago.

What province are you in and is the business incorporated?

Whose name(s) is/are on title to the house?

Customer: replied 1 year ago.
All helpful information, apologies for not including that to begin with. We live in Ontario, the family house is in my name only. My common law wife has a house in her name also
Expert:  Debra replied 1 year ago.

You missed telling me whether the business was incorporated or not.

Customer: replied 1 year ago.
it is an incorporated business, I am the only director/share holder. Thank you again so much for the guidance, it is truly appreciated.
Expert:  Debra replied 1 year ago.

You are very welcome.

The corporation is a separate legal entity. This means that neither it nor its assets would be at risk.

Your house would be at risk.

If you don't have much by way of assets and don't have much equity in the house then it may be possible that you could declare bankruptcy and not lose the house. If there is not much equity then the Trustee in Bankruptcy would not want the house.

I suggest that you try and not worry so much right now, though as I am a terrible worrier I know that this is something you likely cannot help.

You should see a lawyer of course as we discussed.

But first, the insurance company will likely cover you, and second, you may not lose the case if they don't and even if you do it won't likely be by anywhere what they are asking for. And then if you do lose you can likely declare bankruptcy and just start over.

Customer: replied 1 year ago.
Thank you, ***** ***** is comforting all considered. The corporation has been named primarily with my name included, along with others including local township and building dpt. I am fine with the corporation being altered or renamed as needed (if needed) but was the family and house I was worried about. so in the event things don't work out, and bankruptcy is the only option it would completely exonerate me from the debts? Are they intitled to garnish my wages for the rest of my working yrs?
Expert:  Debra replied 1 year ago.

Bankruptcy would wipe out all the debts.

Customer: replied 1 year ago.
Thank you very kindly, I sincerely ***** ***** time and advice.
Expert:  Debra replied 1 year ago.

You are very welcome.

I hope it works out.

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