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Can Filing for Bankruptcy Affect My Personal Injury Claim?

In the aftermath of a personal injury incident, your financial stability can be severely compromised. Medical bills, lost wages, and other expenses can pile up, pushing some individuals to consider filing for bankruptcy as a way to manage their debts. However, if you are contemplating bankruptcy while pursuing a personal injury claim, it’s essential to understand the potential implications. In this comprehensive guide, the experienced Denton Personal Injury Lawyers at Chandler Ross Injury Attorneys will shed light on the intricate relationship between filing for bankruptcy and your personal injury claim. We’ll explore how these two legal processes intersect and offer guidance to help you make informed decisions.

Understanding Personal Injury Claims

Before delving into the impact of bankruptcy on personal injury claims, let’s first clarify what personal injury claims entail. Personal injury claims are legal actions brought by individuals who have suffered harm due to the negligence or misconduct of another party. These claims seek compensation for the damages incurred, which may include medical expenses, lost wages, pain and suffering, and more.

In Denton, TX, and the wider Dallas-Fort Worth (DFW) area, personal injury claims are relatively common. When you’re injured in an accident, whether it’s a car crash, slip and fall, or a workplace accident, you have the right to pursue compensation for your injuries. However, the financial burden arising from such injuries can become overwhelming, leading some individuals to explore bankruptcy as a potential solution.

The Intersection of Personal Injury Claims and Bankruptcy

To grasp the impact of bankruptcy on personal injury claims, it’s crucial to understand the two primary types of bankruptcy individuals typically file for: Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves the sale of a debtor’s non-exempt assets to repay creditors. It is generally a quicker process and provides a fresh financial start after the discharge of qualifying debts. However, it may also require the surrender of valuable assets, such as real estate and valuable personal property.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, on the other hand, allows individuals with a regular income to create a repayment plan to settle their debts over three to five years. Unlike Chapter 7, it doesn’t involve the liquidation of assets, making it a more viable option for those who wish to retain their property.

Now, let’s explore how these two types of bankruptcy can affect your personal injury claim.

The Impact of Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy can significantly impact your personal injury claim. Here’s how:

1. Automatic Stay

One of the immediate effects of filing for Chapter 7 bankruptcy is the automatic stay. This legal injunction prohibits creditors, including those involved in your personal injury claim, from pursuing collection efforts while the bankruptcy case is pending. This stay can provide temporary relief from the pressures of personal injury-related debts.

2. Discharge of Personal Injury Debts

Under Chapter 7 bankruptcy, some personal injury-related debts may be dischargeable. However, this depends on various factors, including the type of personal injury claim and the court’s determination of the nature of the debt. Medical bills related to the injury are often dischargeable, but damages for pain and suffering may not be.

3. Impact on Compensation

Filing for Chapter 7 bankruptcy may affect the compensation you receive from your personal injury claim. If your personal injury lawsuit results in a settlement or judgment, any funds obtained may become part of the bankruptcy estate. This means that your bankruptcy trustee may have the authority to use these funds to repay your creditors.

The Impact of Chapter 13 Bankruptcy

Chapter 13 bankruptcy offers a different set of considerations when it comes to your personal injury claim:

1. Repayment Plan

In a Chapter 13 bankruptcy, you will be required to create a repayment plan to pay off your debts over a specified period. Your personal injury claim may play a role in determining the size of your monthly payments. The court will consider your income, expenses, and the amount of your personal injury claim when crafting the plan.

2. Protecting Your Personal Injury Claim

One potential advantage of Chapter 13 bankruptcy is that it may provide a framework for protecting your personal injury claim. By including your claim in your bankruptcy plan, you can ensure that any compensation you receive is used to satisfy the debt associated with your injury, rather than being subject to seizure by creditors.

Consult Our Denton Personal Injury Lawyers

Navigating the complexities of personal injury claims and bankruptcy requires expert legal guidance. At Chandler Ross Injury Attorneys, our team of experienced Denton Personal Injury Lawyers is dedicated to helping you understand your options and make informed decisions.

When considering bankruptcy in conjunction with a personal injury claim, it’s crucial to consult with a skilled attorney who can assess your unique situation. We have a proven track record of representing clients in Denton, TX, and throughout the DFW area, providing them with the legal expertise they need to secure their financial future.


In conclusion, the decision to file for bankruptcy can have a significant impact on your personal injury claim. The type of bankruptcy you choose, whether Chapter 7 or Chapter 13, and the specific details of your case will all influence the outcome.

If you are facing the complex intersection of personal injury claims and bankruptcy in Denton, TX, or the wider Dallas-Fort Worth area, reach out to Chandler Ross Injury Attorneys for professional guidance. Our team of experienced Injury Attorneys in Denton, TX, and Texas Personal Injury Attorneys are here to assist you every step of the way. Protect your rights, financial future, and personal injury claim by seeking the legal support you deserve. Contact us today for a consultation.

With offices in Denton, Keller, Euless and Southlake, Texas, Chandler | Ross, PLLC and our Personal Injury Attorneys are well positioned to provide the most effective and highly-skilled representation possible.  We are a local law firm, focused on providing each and every client with the best representation possible.   If we take your case, it’s for a reason, and we’re going to prove that to you.  Don’t wait, and don’t compromise.  Contact us today for a Free Case Evaluation.  In most cases, you pay nothing unless you recover.  Contact us now.  (940) 800-2500


While Chandler | Ross makes every effort to ensure information disseminated throughout this website is correct and up to date, we cannot and do not guarantee that informational blogs and articles within the siteare accurate, up-to-date, and/or applicable to any specific situation.  Nothing herein is intended to create, and nor does it create an attorney-client relationship of any kind.  The information contained within this site is for general use and educational purposes only, and should not be relied upon as legal advice of any kind.  No action should be taken in reliance of this information without first contacting an attorney who is licensed to practice in your jurisdiction.

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