Filling Bankruptcy and Personal Injury Claims
Have You Filed Bankruptcy?
Remember your personal injury Attorney can help you during difficult times. Therefore, any and all information you disclose to your Attorney about your personal injury case will impact how the case is handled . This would include filing bankruptcy and personal injury claims.
Let your personal injury Attorney know if you are filing bankruptcy or have filed bankruptcy . It will affect how your Attorney handles your personal injury claim.
Disclosing a prior or pending personal injury case when filing for Chapter 13 bankruptcy is important. Failure to disclose that information is considered bankruptcy fraud. Bankruptcy fraud is a criminal offense. Even if the personal injury case arises after the bankruptcy case was filed, still disclose the personal injury case. Filling Bankruptcy and Personal Injury Claims are controlled by complex State and Federal laws.
What Chapters of Bankruptcy Would Affect My Personal Injury Claim?
Chapter 7, is the liquidation chapter for individuals and companies. If your personal injury case came before you filed for bankruptcy, then your personal injury case becomes an asset of the Bankruptcy Estate. You must disclose the personal injury case to the bankruptcy court or trustee.
If your personal injury case came after you filed for bankruptcy, then it is not a part of the Bankruptcy Estate. It does not need to be disclosed to the bankruptcy court. However, there are exception and you should discuss it with your personal injury Attorney.
Chapter 13, is the reorganization chapter for individuals with regular income. As long as you can show you have income regularly you can file for Chapter 13 Bankruptcy. If you have a personal injury case but are being sued by a creditor(s) you may file for Chapter 13. Rather than the action being given to a trustee, you the debtor choose to retain a personal injury Attorney. That Attorney must then be approved by the bankruptcy court.
Make sure your Personal Injury Attorney and your Bankruptcy Attorney are on the Same Page
The personal injury case will precede normally once your personal injury Attorney is approved by the bankruptcy court. Any money you collect from your personal injury case will be distributed between you and the Bankruptcy Estate by the bankruptcy court. There are exemptions that may allow you to keep more of the money.
Filing Bankruptcy before or after a personal injury claim is complicated. You should always discuss filling bankruptcy and personal injury claims with your Personal Injury Attorney and your Bankruptcy Attorney.
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Useful Bankruptcy Links for Mississippi Bankruptcy Courts.
Injury Lawyers Mississippi & Alabama
Pepper and Odom, P.C. law firm – Save Our Number In Your Phone Now 601-202-1111 Jackson, MS or 205-250-1107 Birmingham, AL