Car accident litigation - now filing for bankruptcy - been in ligtigation for 14 months. Checked into filing bankruptcy

Your question states that you have a bankruptcy lawyer, and as such that lawyer should tell you what to expect based upon the facts of your particular case. Other responders have noted that you need to disclose all assets, and that would include litigation that is pending. However, the outcome of such litigation is always questionable and you haven't stated anything about the nature of your personal injury claim. It is theoretically possible that the trustee could view it as an asset of the bankruptcy estate, but that would be unlikely unless the likely recovery was substantial in relation to the debts you are seeking to discharge. In my experience such is rarely done by the trustee, but you nevertheless must disclose it in your papers, as I am sure your bankruptcy attorney will tell you. Good luck.

You need to get a second opinion from a bankruptcy lawyer in a different legal community in California who is not afraid to advise you that your lawyer may be giving you bad advice. The job of the bankruptcy trustee will be to gather assets to pay creditors - including from monies you may recover in the car accident case. If the court thinks you're just declaring BK to avoid debts while holding an Ace in your hand you could get in legal trouble involving allegations of fraud and end up not being able to discharge any debts. Your bankruptcy schedules require you to disclose potential lawsuits, pending lawsuits and which party you are in those suits and whether you have potential liability or recovery in those. If you expect to get enough money to cover debts you are trying to avoid by filing bankruptcy you may be wise to stop the bankruptcy proceedings and pay the bills with monies recovered in the tort claim. Having a BK on your credit record is burdensome for at least a decade and can affect your ability to find a job...some companies won't hire people who have declared BK...particularly if the job requires the person to handle money or financial transactions. Get a second opinion from a reputable bankruptcy expert ASAP.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive legal consultation and review of all the facts and documents at issue. This answer does not constitute an attorney-client relationship.

Maybe, but not certainly. You don't mention a dollar amount. Some of the money coming from your settlement might be available to your creditors, but at least some of it will most likely be exempt. Assuming that you have lived in California for at least the last 3 years, you will qualify for a $21,825 "wildcard" exemption, to protect property such as bank accounts and this settlement (there are other exemptions for other types pf property, also, such as your furniture, a car, and jewelry). There are other exemptions available that may apply to this settlement also.

Regarding chapter 13 - can you afford to make payments? A Chapter 13 would require you to pay the same value into the plan as would be received in the Chapter 7. If, for example, $30,000 of the settlement would have to be paid in a Chapter 7, you would be required to pay at least $500 per month for 5 years in a Chapter 13. Would that be better? Or would it be better to give up the $30,000 right away and simly have the process over and done with?

Mr. Bush is correct...you may be able to protect some of the tort claim recovery under certain exemptions. It is impossible to tell you exactly how the court will handle this without knowing all the details. You can discuss that with your second opinion attorney at the appropriate time.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive legal consultation and review of all the facts and documents at issue. This answer does not constitute an attorney-client relationship.