Generally speaking, you may have to file a Proof of Claim, and become one of the defendant's creditors, and if your lawsuit had been formally commenced, it will be stayed, meaning no further action on the claim can happen, UNLESS you enter into an agreement to pursue only the available insurance coverage (assuming there is any) rather than the defendant's assets. For additional information on this topic, please see "How a Defendant's Bankruptcy Can Affect Your NY Personal Injury Case."
Jonathan Cooper
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Non-Compete, Trade Secret and School Negligence Lawyer