I have a recent personal injury pending law suit. I am thinking about bankruptcy in IL. Will they take my settlement .

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1. Licensed in IL

   

   Michael Gunderson

   Chicago Bankruptcy Attorney

   Contributor Level 6

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   Answered March 17, 2013 09:28. In Illinois you can "exempt" or "protect" certain personal property when filing Chapter 7 Bankruptcy. A personal Injury case can be protected up to $15,000.00. That means the Bankruptcy Trustee would have the ability to recover any settlement over and above $15,0000. You would keep the first $15,000 and the Bankruptcy Trustee would take anything over that amount. It's best to discuss likely settlement figures with your Personal Injury Attorney and put them in touch with your Bankruptcy Attorney before filing a case.

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2. Licensed in IL

   

   Stephen HoffmanPro

   Chicago Personal Injury Lawyer

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   Answered March 17, 2013 09:09. Consult with a bankruptcy lawyer and inform your lawyer handling your injury claim.
   
   Generally, this should be exempt. But contact a lawyer to confirm.
   
   Stephen L. Hoffman
   Law Office of Stephen L. Hoffman LLC
   Chicago, IL
   773-944-9737
   Email: stephen@hofflawyer.com
   Website: www.hofflawyer.com
   Blog: www.hofflawyer.com/blog/

   This answer posted on Avvo is for informational and educational purposes only. There is no attorney-client... moreThis answer posted on Avvo is for informational and educational purposes only. There is no attorney-client relationship created or formed and you should not rely on this as legal advice. The suggestion is made that if you wish to protect your rights, you consult with an attorney immediately. less

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3. 

   Timothy BowdenPro

   Goodlettsville Car / Auto Accident Lawyer

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   Answered March 17, 2013 09:08. Usually there is an exemption of some monies in the personal injury case. You will need to have your bankruptcy attorney advise you what that exemption is.
   
   Tim

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4. 

   Michael Crosner

   Northridge Personal Injury Lawyer

   Contributor Level 17

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   Answered March 17, 2013 09:19. You need to check with an ILL bankruptcy attorney and your personal injury attorney. I am not a bankruptcy attorney, and only licensed in California, but I know that it usually is listed in the BK petition.

   This is not intended to be legal advise or as legal representation. I am a California personal injury attorney .... moreThis is not intended to be legal advise or as legal representation. I am a California personal injury attorney . Be aware that every state has its own statute of limitations; and statutes & case laws that govern the handling of these matters. less

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5. Licensed in IL

   

   Larry Apfelbaum

   Bloomington Workers' Compensation Lawyer

   Contributor Level 13

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   Answered March 17, 2013 11:06. just a word of caution. I read a case that said if you fail to list the PI case as part of the BK, you could lose the entire PI claim. Your PI and BK attorneys will know the rules.
   
   Good luck to you

   I am licensed to practice law only in Illinois. Any advice that I render is for general information purposes and... moreI am licensed to practice law only in Illinois. Any advice that I render is for general information purposes and does not create an attorney-client relationship. Also it is very important to keep in mind that all legal claims have statues of limitation to file that cannot be missed. A local attorney should be consulted to learn the time limits applicable to a particular claim. less

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6. 

   Christian LassenPro

   Philadelphia Personal Injury Lawyer

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   Answered March 17, 2013 09:20. This was posted under the personal injury section, but you would want to use Avvo's "find a lawyer" tool to consult with a bankruptcy attorney.

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7. Licensed in IL

   

   Burton A. PadovePro

   Hammond Family Law Attorney

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   Answered March 17, 2013 10:19. It is,imply an asset, subject to exemptions. You need to have your injury lawyer coordinate things with your bankruptcy lawyer.

   Mr. Padove is licensed to practice law in Illinois and Indiana. The response herein is not legal advice and does... moreMr. Padove is licensed to practice law in Illinois and Indiana. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Padove strongly advises the questioner to confer with an attorney in your state in order to ensure proper advice is received. If this information has been helpful, please indicate below. Burtonap@aol.com (219) 836 2200 less

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8. Licensed in IL

   

   Henry Repay

   Belvidere Bankruptcy Attorney

   Contributor Level 15

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   Answered March 17, 2013 13:27. If it is a personal injury case, $15,000.00 is exempt. You may also be able to apply part of your general personal property exemption ($4,000.00), but some may be needed for other assets. If the expected settlement is only slightly above the amount you can exempt and your other assets are limited and/or exempt, then the bankruptcy trustee may not find it worthwhile to take any funds. If it is a workers' compensation case, it has been the accepted understanding that the benefits are exempt in a bankruptcy case.
   
   The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) your income information for October 2012 through the present, including wages and unemployment during that period; (2) all your bills (copies neatly assembled, back pages included); (3) last four years’ tax returns; (4) a credit report (use www.annualcreditreport.com to obtain free report if not requested in last year); and (5) other information that may apply, such as copies of lawsuits. Call at your earliest convenience to afford the most opportunity in which to be advised about your best course. You are not required to use an attorney in your area.
   
   I do not recommend filing bankruptcy on your own. There are too many complex issues. I have seen several posts on this site for debtors who filed on their own and are seeking counsel concerning complications. Most of them will have a hard time finding an attorney to get involved to unwind the mess without the attorney charging several times what would originally have been paid.

   The scope of this space does not afford an opportunity to adequately advise you. The response provided is intended... moreThe scope of this space does not afford an opportunity to adequately advise you. The response provided is intended to be informative, but not final. You are advised to arrange a consultation at which all facts and documents can be explored and terms for representation agreed. An attorney-client relationship must be formally established. less

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9. 

   George Andriotis

   Tarpon Springs Car / Auto Accident Lawyer

   Contributor Level 19

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   Answered March 17, 2013 09:16. Consult a bankruptcy attorney to review your specific situation and advise you accordingly. Best of luck.

   Call for a free consultation at 727-937-1400 or visit us on the Web at www.serviceandjustice.com.

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10. 

    Robert CarpenterPro

    Atlanta Personal Injury Lawyer

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    Answered March 17, 2013 09:54. You need to consult with your bankruptcy attorney. There is generally an exemption up to a certain dollar figure.

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11. 

    Jason Studinski

    Stevens Point Personal Injury Lawyer

    Contributor Level 15

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    Answered March 17, 2013 10:01. Consult with a bankruptcy lawyer about this. It is important to coordinate your actions as between your personal injury case and a potential bankrutcy. I anticipate that bankruptcy counsel will tell you that your personal injury claims are an asset that would be dealt with in the event of bankruptcy. I hope this helps. Good luck.

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12. Licensed in IL

    

    Marc Wagman

    Chicago Bankruptcy Attorney

    Contributor Level 17

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    Answered March 18, 2013 10:52. In Illinois you can protect up to $15000 for a personal injury suit. Anything above that amount is subject to the trustee administering as an asset to pay creditors. With a personal injury suit out there it would be advisable to speak with your personal injury attorney first and then potentially a bankruptcy attorney to see what you best option is. If you filed a Chapter 7 and have a pending personal injury suit the trustee could settle or take over the suit and settle for less than you want too settle for.

    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The... moreThe response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Illinois. Responses are answers to general legal questions and the receiver of such question should consult a local attorney for specific answers to questions. less

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13. Licensed in IL

    

    John Hansen

    Rockford Personal Injury Lawyer

    Contributor Level 7

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    Answered March 21, 2013 08:29. Personal injury settlements and awards are exempt to certain dollar maximums, depending on what parts of the settlement are for what specific damages.
    
    Rockford Personal Injury Attorney
    J. Hansen Law Firm
    320 Shaw Street
    Rockford, IL 61104
    Toll Free: (877) 205-6625
    Phone: (312) 878-6410
    Fax: (312) 878-6410
    Email: info@jhansenfirm.com
    Web: www.jhansenfirm.com
    Blog: jhansenlawfirm.wordpress.com
    Twitter: @JHansenLawFirm

    This answer posted on Avvo is for informational and educational purposes only. There is no attorney-client... moreThis answer posted on Avvo is for informational and educational purposes only. There is no attorney-client relationship created or formed and you should not rely on this as legal advice. The suggestion is made that if you wish to protect your rights, you consult with an attorney immediately. less

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