While it may seem to the unsuspecting person that their bankruptcy and personal injury actions are unrelated, your personal injury action can be seriously impacted or compromised by your bankruptcy proceeding.
A person in bankruptcy has a duty to disclose all “property,” which includes a pending or even potential personal injury recovery. Depending on the type of bankruptcy you file or have filed (Chapter 7 vs. Chapter 13), you may not even have the right to bring a personal injury action unless you have disclosed the possible action on the proper form and the bankruptcy trustee has “abandoned” the claim.
The interplay between bankruptcy and personal injury law is complicated. Thus, if you are involved or may be involved in both types of actions, it is crucial that you tell your bankruptcy attorney about your personal injury action and tell your personal injury attorney about your bankruptcy action immediately, even if one of the actions has not yet been filed. You must also give the two attorneys permission to speak with each other about your cases. This will allow your attorneys to communicate to protect your interests.