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    Re: pending personal injury case

    Posted by Al Bruzas on 4/16/08

    On 4/06/08, William T. Yadlon, Esq. wrote:
    > I have a Chapter 7 client with a pending personal injury
    > claim. Will the trustee take over the case and what
    > normally happens?

    You didn't say what state you were in, If a personal injury
    case is exempt it is excluded from the Estate and the Trustee
    has no interest.
    Whether a personal injury case is exempt or not depends on
    whether the federal or state exemptions apply.
    I practice in Las Vegas where the state exemptions apply, we
    have a limited exemption for personal injury proceeds. So
    depending on the Bankruptcy Trustee, some Trustees do not
    bother with the case depending on the value- most however
    either contact the PI attorney for an opinion regarding value
    or hire an attorney to advise the Trustee regarding value and
    decides whether to take over the case or not. If the Trustee
    decides to take the case he or she either hires an attorney to
    pursue the case on behalf of the Estate or hires the original
    PI attorney to work on behalf of the Estate with the usual
    contingency fee. The fee however is subject to final
    bankruptcy court approval.The Trustee usually tries to settle
    the case so that creditors get paid.
    When your PI client files bankruptcy unfortunately you are
    also a creditor to the extent your pre-bankruptcy fees and
    costs are unpaid, whether you are a secured creditor depends
    on state law regarding perfection of attorneys liens. You
    should talk to a bankruptcy attorney in your area or any
    attorney that has been there before. Due to the automatic stay
    you may not be able to collect what is owed to you
    pre-bankruptcy. There is a conflict between your interests and
    your client's.
    Good Luck.

    Posts on this thread, including this one
  • pending personal injury case, 4/06/08, by William T. Yadlon, Esq..
  • Re: pending personal injury case, 4/16/08, by Al Bruzas.

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