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How can bankruptcy affect my personal injury claim?

Feb 13th, 2012

If you have filed bankruptcy while you are pursuing a claim against someone who has caused you personal injury, then your claim becomes part of your bankruptcy estate and the bankruptcy trustee will control when and how your personal injury claim is resolved. And, worst of all, the proceeds from your settlement against the at fault party will likely be used to pay your creditors.

If the at fault party files bankruptcy while you are pursuing a personal injury claim against them, then the automatic bankruptcy stay will freeze any litigation pursued against the at fault party. Your attorney can make a motion to lift the stay in the bankruptcy proceeding to the extent that the at fault party has insurance and this motion is routinely granted.

If you have any questions regarding how bankruptcy affects your personal injury claim, you can contact Matt Troutman at the Kentucky Auto Accident Attorney law firm by clicking here or calling  502-241-8000 or 859-367-0036.


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