Florence Accident Attorney explains how filing bankruptcy can affect your personal injury claim.

 

Florence Accident Attorney

As a Florence Accident Attorney, I have learned from over 29 years of practice that you must avoid filing personal bankruptcy while your personal injury claim is pending. You can file it after the personal injury claim has resolved or before it exists, but not during the claim.

Here is why: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.

Bankruptcy filed by someone who has caused you personal injury can also cause you problems with your personal injury claim. 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 been injured in an accident caused by someone else, Call Florence Accident Attorney Matt Troutman of the Troutman Law Office directly for your FREE case evaluation or click here.

Helpful Links:

Kentucky Motor Vehicle & Traffic Laws

Kentucky Motor Vehicle Licensing Laws

Kentucky No-Fault Laws

Related Links:

Car Accidents

Truck Accidents

Motorcycle Accidents

Death Accidents

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