Compensation Disclosure and Bankruptcy

When a person seeks a personal injury claim against a person or company, they are able to get compensation. Such compensation is a way of becoming financially ‘whole’. However, when that person is facing bankruptcy, they could lose these awards. However, this depends on the type of chapter filed and what is exempt. This article will discuss how compensation disclosure in personal injury awards exempts from bankruptcy proceedings.

When a person suffers an injury at the hands of another, they may file a personal injury claim against them. When all requirements are met, the person succeeds and receives compensation for the damages and losses they have suffered. Such losses may include:

• medical bills,
• property damage,
• physical injuries,
• emotional or psychological trauma or
• pain and suffering

Once compensation is received the injured person may pay off debts and protect their household.

Compensation Disclosure

Failure to disclose monetary assets, including a personal injury settlement, could result in criminal liability. The person must disclose these details at the date of the injury or the date that the claim started. Rather than when receiving the award. This is to ensure that the bankruptcy agent is aware of all the relevant factors. This also applies even if the compensation will not transfer until the bankruptcy starts. Therefore, the individual must disclose their personal injury claim in order to prevent criminal charges or further complications.

Generally, people think that certain important financial details are too personal for the bankruptcy process. However, the reality is that the debtor could lose the total amount of their personal injury award due to non disclosure.

For more information on bankruptcy and personal injury claims speak to an experienced Vinson Law Office lawyer today. Speak to an attorney on how to protect your compensation award. Contact the Vinson Law Office today for a free initial consultation.