One of the most common reasons for filing for bankruptcy is medical bills. You may have had an accident, and you may then find that you are required to file for bankruptcy to discharge your debts. However, while you are considering filing for bankruptcy, you might also have a personal injury case that you're handling. Under these circumstances, you'll want to speak to your attorney about what steps you should take.
Personal Injury Cases Can Take Time
You will want to not delay in filing your personal injury claim because evidence might disappear and you will have a time limit for when you need to file your claim. However, given how long it may take, you may feel like you'll need to file for bankruptcy. However, your attorney will help you determine whether bankruptcy is the right decision or not.
Bankruptcy and Your Settlement
If you manage to reach a settlement, you might wonder what will happen to it when you file for bankruptcy. When you file for Chapter 7 bankruptcy, you will be able to clear most types of debts. You will be obligated to disclose your assets, and your non-exempt assets will be used to pay your debts.
When you are injured, you are required to disclose this. You are required to disclose whether you have received a settlement or if you are expecting to receive a settlement for your injuries. However, your personal injury settlement might be exempt, and this depends on state and local laws.
Injuries After Filing for Bankruptcy
If you were injured after you filed for bankruptcy, you will be entitled to the compensation you receive even if your bankruptcy has not gone through entirely. The debts that you will need to pay for will have also accrued after your bankruptcy and you will need your settlement to pay for it.
However, you will want to make sure that you receive the maximum possible settlement because you will likely not be able to file for bankruptcy until eight years after you filed for bankruptcy the last time. Otherwise, you will not be allowed to discharge your debts.
If you accumulate debts that you cannot pay because your settlement was too low, your creditors will be able to continue to pursue collective action. Fortunately, a personal injury lawyer will be able to assist you in receiving the settlement you need to pay off your medical debts.Share