Attorney at Law
Will I Lose My Personal Injury Award in Bankruptcy?
Most personal injury lawsuits settle for less than $10,000, and if that is the case for you then you don’t need to worry about losing your personal injury settlement in bankruptcy. Ohio law
permits you to keep up to $21,625 in any personal injury settlement you have coming to you, even though you’re declaring bankruptcy. The only time when losing your personal injury settlement becomes an issue is in the case of truly serious injuries such as brain trauma, paralysis, severed limbs, etc.—I certainly hope none of this has happened to you—where you are going to get tens of thousands, if not hundreds of thousands or millions of dollars in your settlement. If you have this kind of money coming to you then you might not need bankruptcy at all. If it turns out that you still need bankruptcy despite having these funds coming to you then there may be ways to minimize the impact on your finances but it is going to require a significant amount of planning and even then there is a good chance there is going to be some kind of fight in court over what happens to those funds. Sometimes it is not legally possible to protect all of your funds and in such cases the best I can offer is to let you know what to expect and what the risks are or to help you find some kind of nonbankruptcy alternative to solving your debt problems.