Will I still be able to file an auto accident case while in bankruptcy and win my money?
-- Anonymous
A.
When you file a bankruptcy case, all of your assets including the right to file lawsuits, become part of the bankruptcy estate. The bankruptcy estate is the collection of property potentially available to pay your creditors.
From that estate, the debtor extracts assets for his fresh start by selecting exemptions. Exempt property is free of the rights of a bankruptcy trustee or the creditors who existed at the beginning of the case.
Which exemptions are available is the only place that bankruptcy law is supposed to vary from state to state. Some states allow use of the federal bankruptcy exemptions. Others require residents to use their state exemptions.
Failure to list an asset, like the right to sue for accident damages, can result in you losing the suit.
