If I File Bankruptcy, Will It Hurt My Case?

Many personal injury victims face significant financial hardships caused by medical bills and lost wages. For this reason, many accident victims consider filing bankruptcy to obtain financial relief. While filing bankruptcy will not terminate a case, if an injury victim files bankruptcy before their injury case is resolved, the case will likely become classified as an asset of the bankruptcy estate. This means that the bankruptcy trustee, as opposed to the accident victim, will be in control of the case including settlement decisions. Additionally, the accident victim may receive little or no proceeds from the settlement or verdict, as the settlement proceeds will likely be distributed to victims creditors. For these reasons, it is important to speak with a qualified attorney to understand the consequences of filing bankruptcy before your personal injury claim is resolved.

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