Personal Injury Claims And Bankruptcy In Illinois

What happens when I have a Personal Injury claim and I need to file a  Bankruptcy? Can I protect a potential settlement or judgment? The  answer is “Yes” you can file bankruptcy, protect your claim, and even  keep your current lawyer.

The problem  most frequently arises when a person is hurt in an automobile accident  and has hired a lawyer to pursue the claim. At the same time there are a  lot of debts and financial relief is needed.

The  first thing is to list the claim whether a law suit has been filed or  if your lawyer is negotiating a settlement before filing a lawsuit or  even if you have not hired a lawyer.

This  is vital Illinois has Personal Injury exemptions that protect almost  all Personal Injury cases. Generally one can file a Chapter 7.If you  have a Worker’s Compensation claim it is totally exempt. The claim is  not a problem if a Chapter 7 is needed.

What  if there is a very large Personal Injury claim. A Chapter 13 can be  filed with special provisions that protect your claim, and you get to  keep your lawyer. In this case the Chapter 13 payments are very low.

What  happens if you have a claim and do not list it? Before the settlement  or the trial the Defendant (which would be the Insurance Company) can  look at the Public Records. They can go directly to the Bankruptcy  trustee who will take the case over and fire your lawyer. The trustee  will likely settle the case for less than its value; charge trustee and  new lawyer fees and take away your Exemption. Also, the Bankruptcy Court  can revoke a Discharge. You could wind up getting nothing or still owe  money. Also, there is always the possibility that the matter could be  referred to the Justice Department for a criminal prosecution.

The  lawyers at Robert J. Adams & Associates have successfully helped  many clients who have a Personal Injury and/or a Worker’s Compensation  claim. With Robert J Adams & Associates, our clients get their just  monetary recovery and get a discharge of their debts.
Hiring Robert J. Adams & Associates is a win-win for you.

(The above is only given as a guide and not legal advice. You must always retain a lawyer and set out all of the facts.)

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