What Happens to Your Personal Injury Claim If You File Bankruptcy

TL;DR

If you are considering bankruptcy and also have a personal injury claim, it is crucial to disclose it to your bankruptcy attorney to avoid complications and potential loss of funds.

Transcript

hey everybody John skiba here from the consumer Warrior YouTube channel and in today's video I'm going to talk about if you need to file for bankruptcy but you have a personal injury claim like a car accident or medical malpractice something like that that you also have going on in your life and we're going to talk about how a bankruptcy impacts th... Read More

Key Insights

• 🥺 Failing to disclose personal injury claims during the bankruptcy process can lead to potential loss of funds to creditors.
• 🤝 Timing is crucial when it comes to filing for bankruptcy and dealing with a personal injury claim, as funds received after filing can be targeted by the bankruptcy trustee.
• 👋 It is best to settle and resolve the personal injury claim before filing for Chapter 7 bankruptcy to protect the funds from being taken by the trustee.

Questions & Answers

Q: What happens if I don't disclose my personal injury claim to my bankruptcy attorney?

Failing to disclose a personal injury claim can lead to complications, as the claim becomes an asset in your bankruptcy estate, which the trustee can attempt to recover funds from to pay creditors.

Q: Is it better to settle a personal injury claim before filing for bankruptcy?

Yes, settling the personal injury claim and receiving the funds before filing for bankruptcy is often the best approach to protect those funds from being taken by the trustee.

Q: Can I still file for bankruptcy if I have a pending personal injury lawsuit?

Yes, you can still file for bankruptcy even if you have a pending personal injury lawsuit, but it is crucial to disclose it to your bankruptcy attorney to navigate the timing of your case properly.

Q: Do I need to involve my personal injury attorney in my bankruptcy proceedings?

It is highly recommended to involve both your bankruptcy attorney and personal injury attorney to ensure coordination and maximize the benefit of both cases. They can work together to guide you through the process.

Summary & Key Takeaways

• This video discusses the impact of bankruptcy on personal injury claims and the importance of disclosing such claims to your bankruptcy attorney.

• Personal injury claims, such as car accidents or medical malpractice, can become assets in your bankruptcy estate if not properly disclosed.

• Filing for bankruptcy before resolving a personal injury claim can result in the loss of those funds to creditors.