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Is there any way to protect a possible lawsuit after I filed ch 7? Are there exempts to protect a tort claim?

Saint Louis, MO |

We filed ch. 7 last year and there is a possibility that we may be claimants in a lawsuit due to our sons birth defect. We did not know about the situation when we filed. We just found out recently.

Attorney Answers 3

  1. As I mentioned in my previous post, you need to tell your BK attorney ASAP.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.

  2. Failure to tell your attorney and disclose this to the court could result in losing the right to sue, denial of a discharge and even criminal charges. Your attorney can tell you if any exemptions can protect this claim.

    First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy. We also do other stuff and we do it well, but Congress wants me to post this notice. Second, nothing on this site is legal advice. You are not my client unless you enter into a written agreement signed by you and me.

  3. A personal injury claimj is an asset in bankruptcy and you have a duty to amend your schedules, and even ask to reopen the case to amend those schedules, when you discover that claim after the bankruptcy was filed. A personal injury claim is not an exempt asset in Missouri. However, you may find that the bankruptcy trustee has no interest in pursuing that claim for the creditors and will abandon that claim back to you. You need to speak with the bankruptcy attorney that handled the case for you.

    This comment does not create an attorney-client relationship. The law and its application by the courts is constantly evolving and changing. This discussion is not to be taken as a definitive guide, and should not be relied upon to determine all fact situations. Each set of facts must be examined separately with the current case and statutory law analyzed and applied accordingly.

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