How a Personal Injury Lawsuit Impacts Bankruptcy
The following is a guest post from the Chicago attorneys at Dolan Law Offices:
If you are simultaneously a defendant in a personal injury lawsuit and a bankruptcy petitioner then you have a lot to think about and a lot of decisions to make that can impact your net worth and your future. For the most part, your personal injury case will proceed in trial court and your bankruptcy case will proceed in Bankruptcy Court. However, your personal injury case will be considered an unliquidated claim in your bankruptcy case and, therefore, impact your bankruptcy settlement.
How Will my Personal Injury Case be Valued?
The value of an unliquidated claim, such as a pending personal injury lawsuit, must be determined by the Bankruptcy Court. Bankruptcy Courts have discretion in determining the value of potential personal injury damages and it is, therefore, advisable to have your bankruptcy lawyer and personal injury attorney communicate with one another and provide an estimated value, and the reasons for it, to the Bankruptcy Court. In most cases the value of your potential liability in a personal injury case will be determined without live testimony and will be determined according to the information provided by your lawyer. Therefore, it is critical that this important information be complete when it is filed with the Bankruptcy Court.
The Chicago attorneys of Dolan Law Offices represent clients in Illinois personal injury cases.
How Do I Determine Whether To Hire A Bankruptcy Lawyer Or File On My Own?
How Do I Determine Whether To Hire A Bankruptcy Lawyer Or File On My Own?
On any given day, we talk to a lot of different Michigan residents about their individual Bankruptcy questions. During these conversations, people frequently ask if whether or not it’s a good idea to file bankruptcy on their own. You may be thinking to yourself, well obviously a bankruptcy lawyer is going to tell me I need a lawyer to file for bankruptcy. Like many other areas of law, deciding to handle your bankruptcy legal matter on your own, is simply not a good decision. Bankruptcy is very complicated. One small mistake can end up costing you much more than the fee you pay to your Michigan bankruptcy legal professional.. Even worse, making repeated mistakes on your filings may subject you to significant penalties and delays.
Hiring A Michigan Bankruptcy Lawyer May Actually Be Cheaper Than Handling Your Situation On Your Own
If you don’t don’t believe us, call us. You don’t have to search very hard to find a bad bankruptcy story. We’re happy to lay out all your options and explain to you which directoin we believe is the best for you specific situation. We understand that each of our clients’ needs is different. One size fits all, do it yourself-style bankruptcy may end up costing you more than hiring an experienced bankruptcy attorney.
There Are Certain Things That A Bankruptcy Lawyer Can Help You With That You Simply Can’t Handle On Your Own
When you are looking for a lawyer for your bankruptcy legal matter, make sure you are talking to attorneys that have experience handling bankruptcies in your state. There are aspects to filing for bankruptcy that a local bankruptcy attorney may be familiar with that one from another state may not. If you’re facing serious debt issues, usually the best thing to do is to talk with a bankruptcy lawyer near you about all the different options that are available to you.
When Should I file for bankruptcy?
Whether to declare bankruptcy is quite a private decision. Many people do not possess any assets in addition to what the law makes it possible for them to keep, even when they do not pay their creditors. If this is your situation, then you might not need a bankruptcy in order to protect your belongings.
A number of people find it beneficial to file a bankruptcy case anyway since their financial circumstance is causing them emotional hardship or depression, or because they wish to free themselves of debt now, if legally allowed, and have their income and belongings to themselves in the future. In addition, several people may well discover that a bankruptcy is worth filing even if they do forfeit some of their belongings.
In the event that many of the following are true in your situation, you may possibly consider bankruptcy:
An Individual’s wages have been garnished or your bank account has been attached
Most of an Individual’s debts are unsecured debts like credit card bills, hospital or doctor’s bills, etc.
Your total debt, not including your car or house loan, is more than you could pay, even over five or more years
Collection agencies are calling you at home and/or at work
A person’s payments are more than 30 days behind on more than one bill
There are lawsuits pending against you
You have high medical bills not covered by insurance
You owe income taxes that you are currently unable to pay
You have few belongings
You have little or no savings
You have had property repossessed (such as a vehicle)
Regulations passed in 2005 make it much more complex to file for bankruptcy.
You should search for guidance of qualified bankruptcy attorneys prior to choosing whether to enter bankruptcy.
Considering Bankruptcy: The Chapter 7 Option
Feeling the weight of the world with more and more bills to pay can be daunting. Chapter 7 bankruptcy is a good way to get a fresh start.
Nearly 2/3 of all personal bankruptcy filings are Chapter 7. This makes it the most common type of bankruptcy. What I will do is define for you exactly what Chapter 7 bankruptcy is and answer 3 of the most common questions asked about it.
Chapter 7 bankruptcy, also known as a straight bankruptcy, is a process where you sell your non-exempt property to help pay debts owed to creditors. It is a liquidation proceeding. Chapter 7 is a quick process that usually takes under 6 months to complete from the time an attorney helps you file. It is a provides the opportunity for a fresh start.
What follows are 3 commonly asked questions about Chapter 7 bankruptcy
1. Do creditors have to leave me alone after I file? In short, yes. Creditors by law are required to stop all actions after you file for Chapter 7 bankruptcy. This is why bankruptcy could be a good way to get yourself a new lease on your financial situation.
2. Will everyone I know find out I went bankrupt? Your bankruptcy filing is a matter of public record. That being said, there is not a strong likelihood that anyone is going to find out unless you tell them. There are so many bankruptcy filings that it isn’t something that typically is publicized.
3. What are the most common reasons that people file for bankruptcy? Unemployment, medical expenses, overextended credit, and divorce to name a few. People often have unexpected, sudden, and large expenses that cause them to fall deeper into debt. Chapter 7 bankruptcy offers them a way to get their heads above water again.
Chapter 7 bankruptcy is not something to take lightly. You will want to further educate yourself about your options and choices. A good step to take is to speak with a Chapter 7 bankruptcy attorney about your issue.
Chapter 7 bankruptcy can be an effective means of eliminating debt. Often times, it can be more effective than debt consolidation. When you are looking for a Michigan bankruptcy chapter 7 attorney, get a free consultation with Michigan bankruptcy chapter 7 attorneys Ardelean and Dunne.