Many individuals end up with a personal injury that can result in a pending lawsuit. When this happens it can often direct the individual that has been injured into a dire financial situation. This may mean that they need to file for bankruptcy but are concerned as to how this will affect their lawsuit. There have been on occasion, individuals that are in the middle of a bankruptcy and end up with a personal injury and need to know how this is going to affect the bankruptcy proceedings.
It could be that if you file for a Chapter 7 bankruptcy when you are involved in a personal injury case that you could lose your claim as it will become property of the bankruptcy estate. In essence, by filing bankruptcy you are turning over your right to collect the money to the bankruptcy trustee assigned to your case. However, there are some personal injury claims that may be exempt from this.
What is most important for you is to retain a qualified and experienced bankruptcy attorney and one that will work with your personal injury attorney as well. There are a lot of rules and regulations concerning personal injury and bankruptcy and you want to make sure that your bankruptcy action is going to provide the desired result, which is to help you get back on your feet financially.
Speaking with an attorney that handles bankruptcies will help you determine if this is the right course of action for you to take at the time or what some of your other options may be. It is most important that you do not attempt to file for bankruptcy on your own because of the potential repercussions that may exist as a result of your personal injury claim.