Personal Bankruptcy Filing after settlement

[mam_]

Asking for a friend here. Hopefully I have enough details so that you may answer to your best ability.

Florida.

In the process of a liabilty case. At the stage of just filed the court docs for a trial. She is going to have to file bankruptcy no matter what when all is said and done.

She was told by her attorney to NOT file bankruptcy during this time period.

After the settlement is paid, she of course can file bankruptcy. But, does it make it more difficult because she will/did (at that point) receive a settlement? Will the judge tell her to pay off what she can of her debts? Does a (liabilty) settlement have any impact on bankruptcy filings?

Thank you.

 

[Michael Wechsler]

Originally posted by mam
Asking for a friend here. Hopefully I have enough details so that you may answer to your best ability.

Florida.

In the process of a liabilty case. At the stage of just filed the court docs for a trial. She is going to have to file bankruptcy no matter what when all is said and done.

She was told by her attorney to NOT file bankruptcy during this time period.

After the settlement is paid, she of course can file bankruptcy. But, does it make it more difficult because she will/did (at that point) receive a settlement? Will the judge tell her to pay off what she can of her debts? Does a (liabilty) settlement have any impact on bankruptcy filings?

It might have an impact, especially if some of her award is not pain and suffering damages. Her attorney knows all the facts in this case -- what did he say?

 

[mam_]

I just spoke with her and she said the suit if for:

-Her pain and suffering
-Medical bills (the insurance company has already paid a large portion of these)
-Her husbands (I don't know what this is called) 'suffering' for the loss of having his wife as she used to be. (physically,mentally and emotionally)
-Her income dropped due to missed days and performance
-Her daily activities have changed (ie yard work, pleasure hobbies, etc)
-There is a disability rating listed as well.

I don't know if those are standard pain and suffering elements or not.

But on the filed papers she says that is pretty much the bottom line of what her attorney listed that has occured because of this slip and fall.

Her attorney stated that since he does not know at this time what the settlement will be for that she should cross that bridge after all is said and done. (He doesn't handle bankruptcies) She is just wanting some indication of what to anticipate with the bankruptcy and the settlement issue.

She has added a question for you please, what would another aspect of the award be for if not pain and suffering?

Thank you.

 

[Michael Wechsler]

I have no idea as to the facts of the case and could not even begin to comment. The term you refer to regarding a spouse's loss of companionship is called "consortium."

Why do you think that she will have to file for bankruptcy? Are her bills unrelated to her situation?

I would definitely speak to a bankruptcy specialist immediately with regard to timing for declaring bankruptcy. Federal exemptions may include personal injury awards up to $7500 (not to include pain and suffering) which does not include state law which is supplementary. I do not know what the repercussions may be for potentially filing after the case is concluded.

Originally posted by mam
I just spoke with her and she said the suit if for:

-Her pain and suffering
-Medical bills (the insurance company has already paid a large portion of these)
-Her husbands (I don't know what this is called) 'suffering' for the loss of having his wife as she used to be. (physically,mentally and emotionally)
-Her income dropped due to missed days and performance
-Her daily activities have changed (ie yard work, pleasure hobbies, etc)
-There is a disability rating listed as well.

I don't know if those are standard pain and suffering elements or not.

But on the filed papers she says that is pretty much the bottom line of what her attorney listed that has occured because of this slip and fall.

Her attorney stated that since he does not know at this time what the settlement will be for that she should cross that bridge after all is said and done. (He doesn't handle bankruptcies) She is just wanting some indication of what to anticipate with the bankruptcy and the settlement issue.

She has added a question for you please, what would another aspect of the award be for if not pain and suffering?

Thank you.