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Warning! What auto accident victims need to know about the Detroit bankruptcy

If you’re a crash victim with a claim against the City of Detroit, complete these 3 steps now to protect yourself

The massive problems plaguing Detroit has caused the city to go into bankruptcy. But what does that mean for automobile accident victims with claims against the City of Detroit? What does it mean for all of those people injured in bus accidents or hit by City of Detroit-owned vehicles who are collecting their PIP-No Fault insurance benefits from the City?

If you have a past or present auto accident claim with Detroit, either for Michigan auto No Fault benefits or what lawyers call a “third-party” tort lawsuit for your pain and suffering, here are the things you must do now to preserve your legal rights.

The most important thing to emphasize is that the bankruptcy situation is fluid and still evolving. If you have an attorney already for either a No Fault/PIP claim or injury case involving the City of Detroit, you must stay in contact and ask your attorney what, if anything else, must be done as the situation unfolds.

As of now, the following applies to anyone who has an auto accident claim with the City of Detroit:

1. File a Proof of Claim form with the Bankruptcy Court or the appropriate addressee specified by the Bankruptcy Court.

You can find the Proof of Claim form here. This must be filed within 90 days of the Detroit bankruptcy being approved. The Bankruptcy Court will issue an order with exact deadlines.

If you don’t have access to a computer or printer, please Michigan Auto Law and our attorneys can mail you a form. Please keep in mind:

  • The proper Court is: the United States Bankruptcy Court “Eastern District of Michigan.”
  • The Debtor is: “City of Detroit.”
  • The Case Number is: “13-53846.”

2. If the City of Detroit is responsible for your Michigan auto No-Fault benefits, you must immediately file an Application for Benefits with the Michigan Assigned Claims Plan (MACP).

This is to see if the city will place your claim with another insurer, even if it’s more than one year after the date of the auto accident.

Add a cover letter that states that you’re filing the Application due to the City of Detroit insolvency/bankruptcy.

Warning: You should have already filed an Application for Benefits with the City of Detroit and if not, should do so as soon as possible. ***This is especially important if your crash is less than one year old, as your claim may be forever barred if it’s not filed in writing and if it’s not filed with the City of Detroit or the MACP within one-year statute of limitations.

Click here for the Michigan Assigned Claims Plan Application for Benefits.

Click here for the City of Detroit No-Fault (PIP) Application package.

3. Make sure you are working with an experienced personal injury attorney who is closely following the Detroit bankruptcy situation.

Under the City of Detroit bankruptcy, any and all current and future lawsuits are “stayed,” meaning stopped. In order to resume your current action or to file a new action against the city in any court, you must receive permission from the Bankruptcy Court to lift the automatic stay.

Our lawyers advise you to immediately consult with an experienced bankruptcy attorney of your choice. Our own office is working with experienced bankruptcy attorneys to monitor the Detroit bankruptcy situation and to make sure that we are doing what we can to protect automobile accident victims with what is to come.

If you have any questions or need help completing these steps, you can call Michigan Auto Law at (800) 777-0028 and our attorneys can assist you. Also, if you don’t have access to a computer or printer, we will mail you these forms.

This entry was tagged Tags: Detroit auto accident claim, Detroit bankruptcy, No-Fault Insurance Blog
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Blog Author Steven M. Gursten
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