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What Happens to My Personal Injury Claim in a Bankruptcy?

One of the biggest reasons an individual runs into financial difficulty is because they have been hit with a ton of medical bills. Many times this is as a result of a personal injury. In some cases these people are fighting for a personal injury claim, which can take months or even years to settle. In these circumstances the person may end up in the meantime having to file for bankruptcy.

It is most important to utilize an experienced bankruptcy attorney to assist in a bankruptcy. At the best of times this area of law can be complex. In the case of personal injury it can be even more confusing. Just because you are filing for bankruptcy, it doesn’t mean that you shouldn’t follow through with your claim for damages. You will have to declare this in your bankruptcy filing, as the courts will be interested in how much of a settlement you may get, and how this can be utilized to clear some of your debts.

There are exemption rules that are applicable to the bankruptcy laws, but these can vary according to each state. It is important that you include your injury claim in your bankruptcy because by not doing so it could affect your rights for laying a lawsuit after your bankruptcy.

Some individuals who have been injured at the workplace receive workman’s compensation and this in most cases is exempt from the bankruptcy. It is important that you give all of the information you have concerning your personal injury to your New Albany bankruptcy lawyer.

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