This post seeks to catalog the best bankruptcy and personal injury posts and Information on the internet. Since Bankruptcy is a federal remedy, the law across the United States will be relatively similar as Massachusetts. It appears that it is usually a bad idea to file Bankruptcy if you have a lucrative Mass. bicycle accident, tractor trailer collision or other injury related claim.
It is important that you disclose this MA negligence cause of action to your potential Bankruptcy lawyer PRIOR to FILING for Bankruptcy. It is conceivable that the lawyers will inform you not to seek Bankruptcy protection as a result of your car crash claim. It is also crucial to inform your MA Personal Injury attorney that you are considering filing for Bankruptcy.
Any car accident, truck collision or motorcycle crash or other personal injury claim that was caused by an event prior to the bankruptcy falls under the ambit of the bankruptcy trustee. Unless there is an applicable exemption the trustee can pay off your creditors.
Exemptions are different in each state. Massachusetts has dozens of exemptions. Slip and Fall, premises liability, bike accidents, auto crashes and any other injury claims must be declared on bankruptcy petitions.
Personal injury claims are treated differently depending on whether this is a chapter 7 or 13 Bankruptcy. Source (Nolo Blog post by: Patricia Dzikowski, Attorney “Can the bankruptcy trustee take money I win in a personal injury lawsuit?”)
Brian Hemphill blog Post: “Once you have filed for bankruptcy protection, your Injury Claim is a part of the bankruptcy estate. That means you technically no longer own the claim and you no longer have the right to pursue the Injury Claim.” Bankruptcy and Personal Injury Claims Posted on November 28, 2012 by Brian Hemphill
Bankruptcy Injury Exemptions: “At first glance, it may appear that a significant amount of money can be retained on a personal injury claim, up to $20,200. However upon a closer inspection of the code, really only lost wages and medical expenses seem to receive any true protection, unless you have not used up your “wild card”.” Attorney Michael Goldstein – Will I loose my Personal Injury settlement in a bankruptcy?
“It’s fairly simple: There is no Massachusetts exemption for injury awards in bankruptcy, but since we have the right to choose exemptions under federal law, we have the following:
Effective April, 2010, the federal personal injury bankruptcy exemption is $21,625 for “personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent.” Nicholas Ortiz “Massachusetts Personal Injury Bankruptcy Exemption” http://massachusettsbankruptcy.blogspot.com/2011/11/massachusetts-personal-injury.html