Disclose Your Lawsuits
Every year, many Americans unexpectedly suffer a personal injury and must confront large and growing medical bills. They are unable to pay not because they didn’t prepare or spent foolishly; they simply can’t afford the care their injury demands. As a result, they decide to file for personal bankruptcy and the protection of bankruptcy law.
In a large number of instances, their decision is the right one. Bankruptcy gives their family and their pocketbook a little breathing space. It also opens important conversations with their creditors, including the health care providers who offered medical services. Lastly, it also let’s them consider whether to move forward with any personal injury claims associated with the party who caused their injury.
If this situation sounds familiar, it’s important to remember: you must disclose any active personal injury litigation in your bankruptcy filing. Although it may not feel like your rights have monetary value, that’s exactly how the law – and your creditors – see it. If you’ve sustained an injury because of someone else’s carelessness and you’ve filed a lawsuit in order to prosecute your claims, you must disclose that lawsuit. In the event of a successful tort action, your creditors may have a claim against those proceeds.
Don’t run afoul of federal bankruptcy law by failing to disclose pending litigation to which you are a party. It’s a relatively easy misstep to avoid – and an important one. Do you have questions about the relationship between your tort law claims and your bankruptcy filing? The attorneys at the Dallas law firm of Fears Nachawati are prepared to advise you. Talk to us today to schedule your free consultation.