QUESTION
How will filing bankruptcy affect my case as a plaintiff in a personal injury case?
Asked on May 19th, 2015 on Bankruptcy - Michigan
10 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Consult your bankruptcy lawyerand if you have filed without one, hire one now. It's almost always worth the investment. Secondly, you can exempt a certain amount of the proceeds from such a lawsuit in a bankruptcy. Have your lawyer check 11 US.C. sec. 522(d), and the equivalent state law on exemptions. In some states, including Wisconsin, you can choose either the state or the federal list. The federal law of bankruptcy permits states to require their residents to choose only the state list of exemptions, and about 35 states have done so.
Answered on Jun 04th, 2015 at 11:26 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Case where the debtor is a plaintiff will continue to proceed despite the bankruptcy. However, the potential proceeds of the case are an asset of the estate. Depending on the amount you can expect to win and the exemption laws of your state, a considerable amount could be taken by the bankruptcy court. This is a complex issue that you need to discuss with your bankruptcy attorney. And you definitely need a bankruptcy attorney in a complex matter like this.
Answered on May 25th, 2015 at 4:34 AM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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The REAL question is how being involved in the personal injury case will affect your bankruptcy, not the other way around. If you file BK, your claim for damages (which is an asset) becomes part of the bankruptcy estate. The question is how much this asset is worth and whether you can exempt it in order to keep it or will some or all of the money go toward paying creditors. You ABSOLUTELY should meet with a bankruptcy attorney to discuss the issues here and whether filing bankruptcy is a good option.
Answered on May 22nd, 2015 at 3:27 PM
There are all kinds of ramifications involved. Pay an experienced BK attorney for one hour of their time. For example, will the case be settled without a trial? If the case is tried, a judge or jury will render a verdict which may have a huge impact within your BK filing (this is just one example). Good luck!
Answered on May 21st, 2015 at 4:40 PM
Deborah F. Bowinski
Your claim for personal injury and damages is an asset that must be listed and disclosed in your bankruptcy filing. There may be exemptions that you can claim to protect that asset, but you really should speak with a bankruptcy lawyer before taking any action.
Answered on May 21st, 2015 at 3:31 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Probably it will allow the trustee to take charge of the case and settle it. It depends upon what it is worth, how much you can exempt and a host of very technical but also very real factors. In general, assume that the trustee will take control.
Answered on May 21st, 2015 at 2:59 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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It may become the Trustee's property.
Answered on May 21st, 2015 at 2:55 PM
If you file a Chapter 7, your bankruptcy trustee will become a partner in your personal injury case. State exemptions will allow you to claim and protect up to $16,150, but the trustee will be entitled to take the rest to use to pay your debts.
Answered on May 21st, 2015 at 2:54 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
2 Awards
There is a Federal exemption for personal injury lawsuits recovery. You will be able to exempt out some of the proceeds from your recovery. I suggest that you get with competent counsel in your jurisdiction.
Answered on May 21st, 2015 at 9:10 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You claim will become part of the bankrupt estate and available to creditors. See an attorney.
Answered on May 21st, 2015 at 9:10 AM