Dealing with personal and health care issues following a car accident is stressful enough. If your financial situation has also deteriorated to the point that you need to file for bankruptcy, you should understand the impact that might have on any personal injury claim arising from your accident. If you are not careful, the bankruptcy may let a negligent defendant escape responsibility for your injuries.
Make Sure to List All Potential Lawsuits
When you file for bankruptcy you must provide the court with a list of all of your known assets. This includes any pending or potential personal injury claims. A claim is considered part of your bankruptcy estate if the cause of action arose prior to filing. In other words, if you are injured in a car accident on January 10 and file for bankruptcy on January 20, any personal injury claim you might have must be listed on your Chapter 7 petition, even if you do not file a personal injury claim until January 30.