Personal Injury and Bankruptcy
Posted By Garrett Riley || Jul 5, 2012
If you have been injured in an accident and are pursuing a personal injury claim, you may want to aware of how filing for bankruptcy can negatively affect your case. In Florida, when you file for bankruptcy, you give up control of your personal injury lawsuit. This means that the bankruptcy trustee in the bankruptcy case can decide whether to settle your injury case or whether to take it to trial.
It also means that the trustee will take any settlement proceeds or award from your trial and use that money to pay off creditors. If there is any money remaining, it would be distributed back to the injured person. Filing for bankruptcy also means your Tampa personal injury attorney does not technically represent you anymore and the attorney must file a special application to stay on the case through the bankruptcy court.
There are many effects and consequences to filing for bankruptcy before you receive a settlement or jury award in your personal injury case and if your potential settlement is going to be large, you may want to consider avoiding filing for bankruptcy. Notify your personal injury attorney immediately if you have initiated bankruptcy proceedings and speak to a personal injury attorney if bankruptcy is a possibility during your case.