Many people struggle financially after being involved in an accident. Before you consider filing for Bankruptcy always contact a Westchester personal injury lawyer handling your case before you decide to file. Once you file, the Bankruptcy Trustee will be making decisions on how much you will be able to collect from any settlement obtained. Here are a few things you should know about personal injury settlements in a New York bankruptcy
- Federal exemptions protect up to $25,180 in personal injury claims but they exclude non economic damages e.g. pain and suffering. However, economic damages such as medical expenses and lost wages are covered.
- Also under the Federal exemptions, up to an additional $13,900 in a “wild card” exemption can be applied to a personal injury settlement.
- New York has its own personal injury exemption up to $8,550 but this also excludes pain and suffering. The federal and state exemptions cannot both be used so the settlement is better protected under the federal exemptions.
These are only a few things to consider before filing for bankruptcy if you have a personal injury case pending. Always contact your Yonkers personal injury lawyer before you file for bankruptcy. Your personal injury lawyer will need to work closely with your bankruptcy attorney and the bankruptcy trustee to determine how much you will be able to collect from your personal injury settlement.