If you have been unable to work and are seeking compensation for a Personal Injury or worker’s compensation claim, it can take quite a long time for these things to be sorted out and for you to be paid. In the meantime, it can be quite a struggle to make ends meet without your wage income and just the faint hope of a substantial settlement coming later at an unknown time.

If you are considering filing for Bankruptcy while you have a claim such as this currently pending, it is very important that you talk with a bankruptcy attorney about how any potential payout from your claim may affect your bankruptcy case and how much of your settlement you would be permitted to keep. When filing for bankruptcy, a person must disclose all of their property in their possession; this includes any pending legal claims for compensation such as personal injury or worker’s compensation claims. If the payout from such a claim is non-exempt, the bankruptcy trustee can seize the funds and pay your creditors with these before discharging any debts and concluding your case. Therefore, it may be wise to wait until your outstanding legal claim has finished and you have received your payout.

Are you struggling with bills while waiting for a legal matter to be sorted out? If you are at all concerned about how a potential settlement of yours would be handled by a bankruptcy court, please feel free to reach out to your Yuba City bankruptcy attorney at (530) 797-4402 to discuss your options to see if filing sooner than later is possible.

The post CAN FILING FOR BANKRUPTCY AFFECT A PERSONAL INJURY OR WORKER’S COMPENSATION CLAIM? appeared first on Law Office of Seth L. Hanson.