How Are Personal Injury Claims Handled in Bankruptcy?
Personal injury claims are usually exempt–meaning protected from the trustee or creditors–but you must be sure to list the injury claim or any other claims. If you don’t, the defendant can assert “judicial estoppel” as a defense to your case in state or federal court. (Note, I misspoke and said “the creditor” in this video. I meant “the defendant.”) Make sure to disclose your injury claim to your bankruptcy attorney.