Can Bankruptcy Affect your Personal Injury Case?

Bankruptcy - Business Person holding an empty wallet

If you are in bankruptcy, or might be soon, this can have an enormous effect on any recovery you may get from a personal injury case. If you are in bankruptcy, your claim does not belong to you; it belongs to your bankruptcy trustee. Generally, you can keep up to $10,000. But the rest usually goes to your creditors. This is general information; there are plenty of exceptions, and negotiation is often possible.

If you are in bankruptcy, it is essential that you tell your bankruptcy attorney or trustee about any possible personal injury claims. If you hide a personal injury claim from your bankruptcy trustee, you would be committing fraud. You could forfeit any money you win, your personal injury lawsuit could be thrown out of court, and you could even go to jail. A good bankruptcy attorney can refer you to a personal injury attorney, and vice versa, and the two can work together to find the best solutions for you.