What Happens to My Settlement If I File for Bankruptcy?

Filing for bankruptcy in Arizona can significantly impact your personal injury settlement. Under Arizona law, when you file for bankruptcy, all your assets, including personal injury settlements, become part of the bankruptcy estate. However, Arizona provides specific exemptions that may allow you to protect a portion of your settlement from creditors.

Arizona Law and Your Rights

Arizona has opted out of the federal bankruptcy exemption system, meaning residents must use state-specific exemptions. One key exemption is the homestead exemption, which protects up to $250,000 of equity in your primary residence. Additionally, Arizona law exempts certain personal property, such as household goods and a portion of your vehicle’s equity. However, Arizona does not have a specific exemption for personal injury settlements, which means these funds could be at risk during bankruptcy proceedings.

Protecting Your Settlement

To safeguard your personal injury settlement, it’s crucial to understand how exemptions apply and to plan accordingly. Consulting with experienced legal professionals can help you navigate these complexities. Attorney Jack Hirsch, a Certified Specialist in Personal Injury and Wrongful Death, and attorney Chelsie Talcott, a former Maricopa County Deputy Public Defender, have extensive experience in both personal injury and bankruptcy law. Their combined expertise can provide you with the guidance needed to protect your assets.

What To Do Next

If you’re considering filing for bankruptcy and have a personal injury settlement, it’s essential to act promptly. Delaying could jeopardize your ability to protect your settlement. Hirsch Talcott operates on a contingency fee basis, meaning you pay no fees unless we win your case. This approach ensures that you receive dedicated legal representation without upfront costs.

For more information on how we can assist you, visit our personal injury attorneys page. To learn more about our team, check out profiles for attorney Chelsie Talcott and attorney Jack Hirsch. Our firm has been recognized by peers and courts for our commitment to clients. See what our clients say about our services and review our past case results. Discover why injured Arizonans choose us and learn more about our fee structure.

Understanding the intersection of personal injury settlements and bankruptcy is complex, but you don’t have to navigate it alone. Contact Hirsch Talcott at 602-903-6000 for a free consultation to discuss your specific situation and explore your options.

Where to get help

If this situation applies to you, Hirsch Talcott offers a free consultation — speak with a Phoenix wrongful death lawyer to understand your options.