Yesterday I had a client come to see me, after she saw two other attorneys who told her that they practice bankruptcy law. The client was an ideal candidate to do a Chapter 13 bankruptcy in Miami, Florida until she provided me information regarding a lawsuit.
The client informed me that she had a pending car accident lawsuit in Miami and that it was set to go to trial in September. She told the two previous attorneys about her lawsuit claim and apparently they didn’t say anything.
A potential car accident claim, whether for $1,000 or $1,000,000 is a an asset for the debtor and it must be disclosed when filing for bankruptcy. When a debtor files a bankruptcy with a pending car accident claim, the bankruptcy trustee steps into the shoes of the debtor and takes over the lawsuit. Any proceeds awarded in the lawsuit will be used by the bankruptcy trustee to pay back the debtor’s creditors.
In my potential client’s case, because the car accident claim was substantial and the debtor could be receiving thousands of dollars it was decided that bankruptcy would not be the right option for her.
All cases are different and there may be cases where it would be adviseable to still file for bankruptcy with your potential car accident claim, but that determination must be made on individual level.
If you are thinking of filing for bankruptcy and you would like to schedule a free consultation with Shmucher Law, PL then please contact our office at 305.741.5553 or 954.309.5559. We would be glad to sit down with you and discuss your individual case and options.