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Personal injury settlement and Bankruptcy?

Seattle, WA |

We are involved in a personal injury settlement from an accident in 2007. My husband had surgery resulting from the accident 5 months ago, he has not been able to work since, we are going to have to file bankruptcy. If this settles before we file are we entitled to any of the money?

Attorney Answers 3

Posted

It depends on how much you expect to receive. Impossible to say whether the money will be safe otherwise.

LEGAL DISCLAIMER
Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute 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 in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.

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Posted

If you file bankruptcy, the trustee will become the owner of your injury claim. In that case, you would not receive any funds unless the recovery exceeded the amount of your debts and the trustee's fees and costs along with the fees and costs of the attorney the trustee hires to pursue the claim.

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Ruben Fuentes

Ruben Fuentes

Posted

Part or all of that claim may be exempt. The spillover exemption is little over $ 22,000 and that may cover your settlement. If it is more you will have to analyze how to handle your "insolvency" before filing for BK if you need it.

Posted

You are entitled to certain exemptions if you file a bankruptcy proceeding so it is likely you could keep some of the funds. Alot depends on the circumstances and the other property you want to keep.
My best advice to you is to seek the advise of a competent bankruptcy lawyer. Most bankruptcy lawyers offer a first visit free consultation. Make sure that you select an attorney that has been practicing law for a considerable period of time and who's emphasis is on bankruptcy law. When you call to make an appointment be sure to find out what documents you should bring to your meeting in order to get the maximum benefit from your free consultation.

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