What happens to a personal injury settlement in a bankruptcy?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What happens to a personal injury settlement in a bankruptcy?

In 03/08, I fell at a private residence and fractured my left ankle, requiring urgent surgery. The fracture didn’t heal and required a second surgery in 11/09(I was a RN at the time of the injury yet wasn’t employed at the time; the ankle wasn’t “healed” until 02/10.) During this long recovery time, we lost our home and paid thousands in medical expenses. Our bankruptcy attorney advised us the day before meeting the the trustee that we would probably need to retain a PI attorney, which we did. In OR, are we able to keep 10k? What about pain and suffering?

Asked on August 14, 2010 under Bankruptcy Law, Oregon

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

You don't indicate what type of bankruptcy that you have filed. In a Chapter 7, the Trustee determines whether there are any non-exempt assets which could be seized and liquidated for the benefit of your creditors. In some jurisdictions personal injury settlements are protected from seizure in a Chapter 7; in others they are not. In a Chapter 13, some jurisdictions treat such an award as a form of disposable income you must submit to the Trustee. Right now, you should ask your bankruptcy attorney what your rights/liabilities are in your specific jurisdiction.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption