In Kansas City, hundreds of people, and families, file for bankruptcy each year. One of the leading causes of bankruptcy is medical bills. The costs related to your personal injury could put you in dire financial straits. Attempting to face the insurance company (yours and the at-fault party's) can quickly become a battle lost. You need a qualified attorney on your side to get you the compensation you deserve. You shouldn't have to face bankruptcy because of the injury someone else caused you. Here is some information that may be helpful if you already have filed bankruptcy, or later need to:
What if I do need to file bankruptcy?
If you need to file bankruptcy, and you have a pending personal injury claim, you must DISCLOSE it. Your personal injury claim is considered an asset, like your car or horse, and will be considered part of your bankruptcy estate. Failing to disclose this asset (even though it has not yet been recovered) could mean the loss in the financial recovery that would have been otherwise exempt. Some possible exemptions include: wrongful death claims, worker's compensation claims and loss of future earnings claims. Although, in the end, the matter may be exempt, you must disclose the information in your schedules.
Not only could failing to disclose the claim mean that your recovery is paid to your creditors, it could also mean potential criminal action against you.
What if I filed for bankruptcy before my injury?
Usually the date of the injury (or when the claim arose), not the date of the recovery, is used to determine if the claim is part of your bankruptcy estate. If your bankruptcy is still an open matter, and you were injured, (even if you will not recover until after the bankruptcy matter ends), you must disclose the personal injury claim to your bankruptcy trustee. As noted above, failing to disclose this could mean the loss of your award/settlement and potential criminal charges.
What if I am injured and then recover, after my bankruptcy matter has been settled?
That depends on the type of bankruptcy you filed. Chapter 7 bankruptcy will allow you to keep your recovery. In a Chapter 13 bankruptcy, you must disclose it, and the trustee may require you to increase your payments to your creditors.
If you are injured, and have a pending bankruptcy or later need to file, Attorney T. Morton, and her team, have relationships with bankruptcy attorneys in Kansas City who can offer you guidance. Call us today at 913.602.7288 or complete this FORM.
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