How a Bankruptcy Filing Affects Personal Injury Claims
If you are wondering how a bankruptcy filing affects personal injury claims, contact our Connecticut bankruptcy attorney from The Law Offices of Ronald I. Chorches. Filing a personal injury claim or filing for bankruptcy are both complicated on their own. However, if you have filed a personal injury claim or plan to and are also filing for bankruptcy, you may want to work with an attorney to see what could happen to the settlement you might get from your claim. When you filed the personal injury claim, when you got the settlement, and when you filed for bankruptcy are all very important factors.
Will my settlement money be lost in the bankruptcy process?
Understandably, if you have already filed a personal injury claim against someone and won a settlement, you are likely wondering how filing for bankruptcy affects your personal injury claim. The settlement money you win in your personal injury claim is called an “asset.” Even if you have only filed your lawsuit and have not won yet, you must still list this lawsuit as an asset.
Do I have to disclose this? Do I have a right to the settlement amount?
As a Connecticut bankruptcy attorney could tell you, you may be in for serious legal ramifications if you file a claim or receive a settlement and do not list it as a financial asset. It is even possible that if you do not list your personal injury lawsuit when you are filing for bankruptcy and the bankruptcy court discovers that you left it out, they may fight for you to not pursue the personal injury lawsuit.
What happens if I file for Chapter 7 bankruptcy and then file a lawsuit?
If this is the case, your creditors should not come after your settlement amount after filing for bankruptcy. Keep in mind that trying to get around the system and file your lawsuit later probably will not work. Instead, if you were injured before you file for bankruptcy and attempt to file your personal injury claim later, this does not mean you will get to keep your settlement amount. With Chapter 13 bankruptcy, you may be able to exempt a certain amount of money you receive from your personal injury claim. It will be a huge benefit to have an attorney on your side because things can become complicated quickly.
If you are still wondering about the ways filing for bankruptcy can affect personal injury claims, do not hesitate any longer to contact The Law Offices of Ronald I. Chorches.