Car accident injury and bankruptcy

Car accident injury and bankruptcy

Car accident injuries and bankruptcy relate in two primary ways:

1. If you caused an accident and are liable for another’s injuries or losses;

2. You were injured in a car accident caused by someone else.

If you were responsible for an accident that resulted in someone else’s injury, you may be liable for damages, meaning you may owe that other person money for their medical bills, pain & suffering, wage loss or property (car) damage. If you don’t have insurance, or enough insurance to cover the potential claim, you could be personally liable. Bankruptcy eliminates this type of debt and is a common cause of bankruptcy filing.

If you were injured by someone else in a car accident (or other type of accident), you have a potential claim against that person. That money you may get from the accident must be disclosed in your bankruptcy and, almost always, can be protected (exempted) entirely, meaning you can keep what you get from the injury and still eliminate your debts through your bankruptcy filing.