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Let’s say I was involved in an auto accident. I got a settlement and spent the money. Now my health insurance wants their money back, but I don’t have it anymore. I don’t have any real assets either. Will they sue me? Will I have to file for bankruptcy?
Asked on October 6, 2016 under Accident Law, California
Answered 8 years ago | Contributor
Legally, you are not allowed to be paid twice for the same thing(s), so if the insurer paid you, then you received a setlement for the same costs or losses for which the insurer paid you for, the insurer, not you, is entitled to the money. If you don't repay it, legally they could sue you--whether they will or won't depends on how much is at stake and whether they deem it worth their while. As for bankruptcy: that is an option, since bankruptcy works against debts like this, but it's also a drastic option, which affects your credit and life for years. If you are sued and end up liable for more than you can afford, consult with a bankruptcy attorney, to understand the process, the benefits, the costs, and the effects, before deciding what to do.
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