The Personal Injury Claims Exemption in Bankruptcy protects proceeds from an injury lawsuit. There exemption protects your interest in claims for bodily injury, death or worker’s compensation. The exemption is up to a net amount of Fifty Thousand Dollars ($50,000). However, this does not include any part of the claim for punitive damages.
Don’t Forget To Claim It:
The important thing about the Personal Injury Claims Exemption is that you don’t forget to list it in your bankruptcy schedules. The law requires you to list it in order to claim the bankruptcy exemption. Many time’s people with injury claims dont really consider the claim as an asset. The injury claims include both personal injury and workers compensation cases.
If You Forget to List The Personal Injury Claim:
A typical problem is that if you don’t list it this leaves the door open for the trustee to take the proceeds of the case. The reasoning is that you didn’t list the injury so you cant use the personal injury claims exemption. Its really unfortunate given if listed in the bankruptcy its yours to keep. The trustee checks all court records looking for injury claims. If they find that you have one and failed to list it the trouble begins. I’ve had a few cases like this and only after arguing with the trustee have my clients succeeded in preserving their personal injury claims exemption.
Oklahoma Bankruptcy Attorneys Helping You:
Oklahoma bankruptcy exemptions are a great tool. They’ll help you protect most if not all of your personal property. Not only are the proceeds of a personal injury claim exempt but so is your house and car. Our bankruptcy attorneys also practice personal injury and workers compensation law. This helps to ensure that any injury claims you have will be properly scheduled and protected when you file bankruptcy.