There is no requirement for you to have a company in order to file bankruptcy (BK). You have to be 18 years old and have more debts than assets (things you own). The amount you would owe to the insurance company would be discharged (meaning that you would NOT have to pay that debt AT ALL). The insurance company would NOT be able to collect from you ever again.
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Different chapters of the U.S. Bankruptcy Code apply to individuals and/or entities. The most common chapters under which individuals file are chapter 7 and 13, while business entities usually file under chapter 11 and sometimes chapter 7.
In your situation, without knowing much more about your financial condition, I would not recommend bankruptcy for you in that, without more, it may be like shooting a flea with an elephant gun.
I assume you have no insurance, because if you did, this is exactly what insurance is for.
Here is more general background information on bankruptcy:
I agree that it is a bit too early to be considering bankruptcy since you don’t know yet if you are at fault or what, if anything, you may owe. You also asked whether the bankruptcy would affect you. A bankruptcy will remain on your credit reports for 10 years. It will reduce your ability to obtain credit at favorable rates during that time, although the degree of impact lessens as time passes. Once a debt is discharged you do not need to make payments on it and your wages cannot be garnished to pay the debt. Finally, it doesn’t seem that this is the case from the facts you listed, but a bankruptcy would not be helpful if you were intoxicated during the accident because those debts cannot be discharged.
Please note that although this answer may provide information concerning potential legal issues, it is not a substitute for legal advice from qualified counsel. You should consult an attorney for individual advice regarding your own situation. Answering this question does not create any attorney-client relationship between you and Kelly Zinser, Shareholder at Olenicoff & Zinser, PC in Irvine, California. For more information on bankruptcy, please see our website.