General question about liability in trucking accident when company is bankrupt

Looking for general information, not legal advice.

In a situation where a truck driver (paid as 1099) is involved in an accident while operating under a company’s authority, and:

• The company later files bankruptcy
• Insurance denies coverage claiming the truck was not insured
• The company owner claims the truck was “leased” to the driver

How is liability generally analyzed?

I’m trying to understand how courts typically view:

• Independent contractor vs motor carrier responsibility
• Lease arrangements in trucking
• Comparative negligence in rear-end style collisions

If no lawyer can take the case, can city provide lawyers for civil matter?