The impact of bankruptcy on personal injury claims:
The federal Bankruptcy Code (11 U.S.C. Sec. 101, et seq.) provides specific
treatment for various classifications of damage claims. Personal injury lawyers must remain constantly
vigilant of the terms provided in the Bankruptcy Code when anticipating problems in the collection of
settlements and judgments on behalf their clients. Generally, liability for negligence claims is
dischargeable in Chapter 7, yet liability for automobile accidents resulting from DWI or DUI are not
dischargeable. Likewise, injuries which result from intentional or criminal acts are not dischargeable.
Because of the contingent nature of the legal cause of injury and resulting damages, personal injury lawyers
frequently consult with bankruptcy attorneys and Law Firms regarding the potential for collection in the
event a defendant files bankruptcy. The final determination often turns on the facts surrounding each case
which may be construed in a different light by bankruptcy courts and state trial courts. For further
information, we hope you find the financial resources listed below helpful. All sites submissions are reviewed
for reasonable quality and relevancy to personal injury lawyers, claims and litigation issues commonly
encountered by plaintiffs. To submit a new site to our resource directory, see our
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Bankruptcy Sites:
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Rather than file bankruptcy because of pending personal injury
lawsuits, many plaintiffs find viable alternatives through existing
credit options. Occasionally, lawsuit loans may be available. More
often, traditional lending and debt relief options offer quick help:
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