You really need to call a lawyer and flesh this out. Assuming this was the grandmothers fault, then your claim as parent is against the grandmother and her insurer. You may need to show the insurer that you have custody of the child if the grandmother is disputing this.
It can be both at once. Workers compensation will pay the medical and that claim will proceed. Once the patient is healed and the medical is finished you move forward on the accidebt claim against the at fault driver as well.
With lost wages that high, that is not a do it yourself kind of case. You will need solid medical documentation showing that your doctor took you out of work. Take the time I meet with a lawyer in a free consultation and make a decision from there.
You cannot direct your insurance company what to do so there is no real challenge. The limited release is there to allow her to proceed against her own underinsured motorist insurance for more money. They in turn will come after you. I would call your own insurer and ask for a copy of the plaintiff's demand package and review it to see how big of a threat you are looking at.
Yes, the insurance for the other driver will cover the medical bills, lost wages and a reasonable amount for pain and suffering. With a concussion, be patient. You want to make sure your head is 100 percent clear with no long term consequences before settling out.
In the meantime, if you have health insurance, run it through that.
Your lawyer is honest and 100 percent correct. There are loan companies available out there but the interest rates are worse than pawn shops. Be very careful and be thankful you have a straight up lawyer working for you. If a lawyer ever offers to loan you money to get your business, you can be sure you will get taken by them in the end. Dishonesty is a habit
You only have two years within which to file the lawsuit itself. So you cannot wait that long. More importantly, it is likely that the insurance carrier will realize that you are filing bankruptcy. Technically the bankruptcy court will own the claim. The bottom line on this is it is a complicated situation involving an interplay between bankruptcy law and personal injury law. This is one that you cannot handle yourself
You are only legally responsible if 1) you knew that your friend had a lengthy history of careless driving (a negligent entrustment claim) and 2) your friend is found liable. Its hard to prove unless your friend has a disastrous driving record. Either way, your insurance will give you and your friend a free lawyer.