If someones files bancruptcy, does that protect them from paying a personal injury lawsuit filed against them?

It depends upon whether the injury was as a result of negligence or an intentional act. Intentional acts are not discharged in bankruptcy. I would file the action and force her to file bankrupcy it is not so easy to file a bankrupcy especailly if she has a source of income . She might become more reasonable after you file a lawsuit. Is the day care center in a personal or corporate name?. Corporate Bankrupcies are expensive and difficult. if the day care centyer is in a limited laibility or corporate company name you can sue the company.You should consult a lawyer immediatley!

Your daycare provider was required to either have insurance, post a bond, or notify each parent of the fact they did not have insurance.


See CA Health & Safety Code Sec. 1597.531(a).

(a) All family day care homes for children shall maintain
in force either liability insurance covering injury to clients and
guests in the amount of at least one hundred thousand dollars
($100,000) per occurrence and three hundred thousand dollars
($300,000) in the total annual aggregate, sustained on account of the
negligence of the licensee or its employees, or a bond in the
aggregate amount of three hundred thousand dollars ($300,000). In
lieu of the liability insurance or the bond, the family day care home
may maintain a file of affidavits signed by each parent with a child
enrolled in the home which meets the requirements of this
subdivision. The affidavit shall state that the parent has been
informed that the family day care home does not carry liability
insurance or a bond according to standards established by the state.
If the provider does not own the premises used as the family day
care home, the affidavit shall also state that the parent has been
informed that the liability insurance, if any, of the owner of the
property or the homeowners' association, as appropriate, may not
provide coverage for losses arising out of, or in connection with,
the operation of the family day care home, except to the extent that
the losses are caused by, or result from, an action or omission by
the owner of the property or the homeowners' association, for which
the owner of the property or the homeowners' association would
otherwise be liable under the law. These affidavits shall be on a
form provided by the department and shall be reviewed at each
licensing inspection.

If this statute was violated by the provider, you may have recourse against them as they knowingly violated the licensing requirements.

You should consult with an attorney to know what your legal rights are here.

Stanley Dale Radtke, Esq.
220 Montgomery Street, Suite 416
San Francisco, CA 94104
415-252-1234

Courts have held that failure to have mandated insurance is not a violation of the law which will avoid bankruptcy protection. THe best strategy is to sue the daycare provider and hope that her insurance company will change their mind when faced with a lawsuit. This does happen, although I cannot guarantee that it will. What is the amount of the damages, what are the injuries that were suffered?

Peter Stone attorney.

The short answer is yes, she will be "personally protected" from paying you anything on the claim. A bankruptcy proceeding deals with discharging debts of the bankrupt party, and a claim like your's is debt (potential or actual). However, if she does file bankruptcy she must give you notice of the bankruptcy so that you have the opportunity to file a claim in the bankruptcy proceeding. You should pay close attention to any bankruptcy notices you receive concerning the daycare center defendant. If you receive one, you should consult an attorney for advice on how to file a claim and preserve your claim. Failure to file a claim in the bankruptcy proceeding can eliminate your claim and bar you from forever pursuing the daycare homeowner. One last point: you can sue the daycare homeowner, and if she files for bankruptcy in response, an attorney can file a motion with the bankruptcy court to permit you to proceed against only the available insurance. If the homeowner is telling you that her insurance will not cover the claim, she could be lying. I encourage you to confirm this fact for yourself.