Bankruptcy and Lawsuits
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Bankruptcy and Lawsuits
What Our Kansas City Bankruptcy Attorney Thinks You Should Know
Sometimes good, hardworking people find themselves in difficult situations. Tough financial situations can follow unpredictable accidents that cause injuries, or vice-versa. However, you should not be afraid if you have to file for bankruptcy while going through a personal injury lawsuit. The right attorney can help you through bankruptcy and lawsuits.
The attorneys at Troppito Miller Griffin, LLC understand how to navigate bankruptcy law after an injury. This is why we have gathered some resources to help individuals facing financial struggles while dealing with a personal injury lawsuit. If you are considering bankruptcy or waiting for your case to settle, you may find the following information helpful.
What Kind of Bankruptcy Should I File?
Generally, people usually file Chapter 7 bankruptcy or Chapter 13 bankruptcy. The type of bankruptcy that can work best for you depends on your unique situation. For example, if you have an ongoing claim for a personal injury and are also considering bankruptcy, you should consider when the court may award you a settlement. Filing bankruptcy after a lawsuit can have an impact on your bankruptcy process.
There are many issues that can overlap between the types of bankruptcy, but the differences are:
- Chapter 7 Bankruptcy: As a rule, Chapter 7 bankruptcy wipes out most of your general debts, like medical bills and credit cards, without a repayment plan. For this reason, Chapter 7 works well for people with little or no assets. These cases take approximately 90-120 days to complete and are quicker than other forms of bankruptcy. If you expect a settlement soon, Chapter 7 may be the right choice under the right circumstances. However, you will need to make sure to disclose the lawsuit to the bankruptcy court.
- Chapter 13 Bankruptcy: Generally, Chapter 13 is a reorganization bankruptcy designed for people with regular income. These cases can take three to five years to complete. Chapter 13 bankruptcy can be more flexible as it may offer a minimal monthly payment at the beginning of your case and you might be able to keep some or all of the funds you receive from the personal injury settlement.
What Happens If I Fail to Disclose a Personal Injury During Bankruptcy?
Federal law requires you to disclose all of your assets when you file for bankruptcy. In addition, you can also make amendments and updates to your list of assets. For this reason, you should never hide your personal injury case. Otherwise, the courts could declare that you committed “failure to disclose.” If this happens, you can lose all the compensation you could recover in a personal injury lawsuit and your bankruptcy could be at risk.
Will Bankruptcy Affect My Personal Injury Claim?
If you suffered an injury, then you have a right to pursue damages in a personal injury claim. This is true whether or not you are considering filing or are in the middle of filing bankruptcy. However, the court and creditors must be aware of the claim. This will allow the court to properly determine what happens to any settlements awarded to you. For instance, some overlapping issues to consider involve:
- Settlement Details: Expect the bankruptcy court to inquire about your settlement amount. In the case of an unliquidated settlement, the judge may consult with your creditors to determine what part of the settlement is going toward paying your debts.
- Declare Personal Injury Claim as Property: Your bankruptcy petition must declare your claim as property.
What Are Debtors Duties in Bankruptcy?
A bankruptcy estate is established when you file a bankruptcy petition. This estate must include all equitable interest in property of any kind, including personal injury claims. Your duty is to file a list of:
- Assets: Assets are the property you owe. This includes houses, vehicles, bank accounts, furniture, electronics, clothing, retirement/investment accounts, personal injury claims, and any and all property you own.
- Liabilities: Liabilities are the creditors to whom you owe money. Liabilities refer to who is directly responsible for an obligation and all liabilities must be listed.
- Exemptions: Exemptions are used to protect the property you own. Depending on your circumstances, you can list certain property as exempt. After a careful review with a legal professional, you can determine how you can use exemption definitions and your personal injury settlement to your best advantage.
Do I Have to Pay My Creditors with My Personal Injury Settlement?
When you file for bankruptcy, your personal injury claim becomes a part of your bankruptcy estate. This means the bankruptcy trustee becomes the owner of the estate. He or she will represent your creditors and make decisions about how to divide that estate. Since the trustee can pursue personal injury litigation on your behalf, the bankruptcy judge must approve settlements. This is why hiring an experienced bankruptcy attorney is so important when you a pursuing a personal injury claim while filing for bankruptcy.
An experienced attorney is familiar with trustee policies, which may help with negotiating your share of the lawsuit. A bankruptcy lawyer can also help you claim any exemptions that you may have.
Why Choose a Bankruptcy Lawyer in Kansas City, MO?
Not all law firms are created equal. If you’re searching for the best bankruptcy lawyer Kansas City offers, look for a team with the experience, compassion, and local knowledge to deliver results. At Troppito Miller Griffin, we pride ourselves on providing honest advice and practical solutions that put your needs first.
Whether you need a bankruptcy lawyer Kansas City MO for a complex case or an affordable bankruptcy attorney Kansas City for guidance on your options, our team is here to make the process less stressful and more empowering.
How Bankruptcy Can Affect Lawsuits in Missouri
Many people ask: Can bankruptcy stop a lawsuit in Missouri? In most cases, filing for bankruptcy puts an automatic stay in place—immediately halting most collection actions and lawsuits against you. This powerful tool can give you the breathing room you need to regroup and protect what matters most.
Common Lawsuits Bankruptcy Can Stop:
- Credit card collection lawsuits
- Medical debt lawsuits
- Wage garnishments and judgments
- Foreclosure actions
Some lawsuits, such as those involving fraud or certain government actions, may not be stopped by bankruptcy. That’s why working with a skilled bankruptcy defense attorney Kansas City MO is so important. We’ll help you understand your situation, your rights, and your best course of action.
Chapter 7 vs. Chapter 13: Which Bankruptcy Option Fits?
Choosing the right bankruptcy chapter is critical. Many Kansas City residents benefit from Chapter 7 bankruptcy when they need a quick, fresh start and can qualify based on their income. Others find that Chapter 13 bankruptcy is a better fit if they want to protect assets, catch up on payments, or stop foreclosure over time.
Our attorneys will help you compare the options and select the one that aligns with your goals—whether you’re facing chapter 13 bankruptcy lawsuits Missouri or want to explore the fastest path to financial relief.
What Happens if You Get Sued After Bankruptcy in Missouri?
Many people wonder, what happens if I get sued after bankruptcy MO? After a successful bankruptcy, most discharged debts cannot be collected. However, some obligations—like child support or debts incurred by fraud—remain. Our team will help you understand your discharge, your protections, and how to respond if creditors contact you after your case closes.
The Bankruptcy Lawsuit Process in Missouri
The bankruptcy lawsuit process Missouri can feel daunting. Here’s what you can expect:
- Automatic Stay: Filing triggers immediate protection.
- Case Review: Your attorney assesses any pending lawsuits or judgments.
- Creditors’ Meeting: An opportunity to clarify any claims or disputes.
- Resolution: Lawsuits may be dismissed or resolved through your bankruptcy plan.
With an experienced bankruptcy litigation attorney Kansas City on your side, you’ll have a guide through every stage of the process.
FAQs: Bankruptcy and Lawsuits in Kansas City, MO
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Can bankruptcy stop a lawsuit in Missouri?
Yes, in most cases bankruptcy triggers an automatic stay that stops most lawsuits, collections, and wage garnishments. Some exceptions apply—contact us to discuss your specifics. -
What happens if I get sued after bankruptcy MO?
If the debt was discharged in bankruptcy, you may have strong defenses. For non-dischargeable debts, our team can help you respond quickly and effectively. -
What is the difference between Chapter 7 and Chapter 13 for lawsuits?
Chapter 7 bankruptcy can eliminate many debts outright. Chapter 13 bankruptcy lets you repay debts over time and stop certain lawsuits through a court-approved plan. -
How much does a bankruptcy attorney in Kansas City, MO cost?
Costs vary, but Troppito Miller Griffin offers transparent fees and payment plans. If you’re looking for an affordable bankruptcy attorney Kansas City, reach out for a consultation. -
What kinds of lawsuits cannot be stopped by bankruptcy?
Some lawsuits—such as those involving criminal charges, child support, or recent debts incurred fraudulently—may not be halted by bankruptcy. Contact us to review your specific case.
Related Services and Practice Areas
Our practice areas include not only bankruptcy law but also Personal Injury and other legal services for individuals and businesses across Kansas City. To learn more about who we are, visit our About Us page.
Take the Next Step—Protect Your Future Today
Imagine the peace of mind that comes from finally resolving your financial burdens, stopping lawsuits, and moving forward with hope. Troppito Miller Griffin is here to be your advocate, your resource, and your guide through every step. If you have questions about bankruptcy and lawsuits in Kansas City, MO, or want to discuss your options with a compassionate expert, contact us now for a confidential consultation.
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Troppito Miller Griffin, LLC, is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.