What happens if I am a Plaintiff in a personal injury case and need to file chapter 7 bankruptcy?

Your lawsuit is an asset which will be used as an asset f your bankruptcy with the proceeds to go to pay off your debt. Any monies left over will go to you. Confirm with local bankruptcy counsel.

If you have to file for bankruptcy protection before your lawsuit is settled or reduced to judgment you must add it as an asset of your bankruptcy estate in Schedule B. Most states have an exemption for personal injury related claims but I am not sure from your questions if your claim is personal injury related. If your claim is not an exempt asset and you file bankruptcy, your trustee could assert an interest in the claim and prosecute it and use the proceeds to pay your creditors. You should get a free consultation with an experienced bankruptcy attorney near you and ask about this claim. You should bring with you a copy all the pleadings filed in the state court case..

If you had that $20,000 today, wouldn't you use it to pay off your debts? So just look at bankruptcy as temporary relief until you get that money. Bankruptcy relief is for the honest debtor who intends to repay his debts, but is unable. It is not a means of skirting your obligations while you are able to fulfill them.

Unclear why you think bk is the best option, it probably isn't

The other attorneys are correct that if you file bankruptcy, your employment case becomes an asset of the bankruptcy estate. As a practical matter, most bankruptcy trustees will work something out where you will be able to keep a portion of the proceeds so that you and the attorney handling the case will have incentive to pursue the claim diligently. First, consult with a reputable bankruptcy attorney (preferably one with experience handling other types of consumer claims, such as debt collection harassment), to see if bankruptcy really is your best option. If bankruptcy is recommended, then you'll want your employment case attorney to negotiate a deal with the trustee in order to continue the case. The trustee has a duty to negotiate in good faith because the failure to do so would likely result in you and your employment law attorney dropping the case - after all, who wants to risk the time and expense of litigation without the likelihood of a reasonable return? The bankruptcy trustee's job is to maximize the assets available to the estate to satisfy creditors, so it is in his or her interest to work with you on this. I've yet to have a bankruptcy trustee to say "no" to continuing a viable case and working out a reasonable fee arrangement, together with something for the client to keep in the event of a recovery. Good luck!

Your lawsuit will become an asset of the bankruptcy estate once you file. The bankruptcy trustee will make a determination whether to continue to peruse it or not.

Without knowing a number of other facts it is very difficult to give you a definitive response. In my experience, it is typically impossible to be so accurate on what money you would net to from a lawsuit until it is either ruled on in court or settled by the parties. Assuming you are successful in obtaining a judgment, you will still have to collect on that judgment. Another issue is whether a bankruptcy proceeding is even a viable route for you. Although, knowing the value of your assets is relevant to the analysis, it doesn't in itself mean you qualify to file bankruptcy. Most bankruptcy attorneys in my area provide free consultations and would give you there opinion as to whether a bankruptcy is appropriate, and if so, what type. In my opinion, you should find an attorney immediately to better direct you.