Legal Question in Bankruptcy in California

Your injury lawsuit is an asset that you must disclose in your bankruptcy papers. The lawsuit will be placed on hold and your attorney can tell you if you can claim the lawsuit as exempt. In a Chapter 7 case, the trustee might be entitled to receive a portion of the settlement to give to your creditors, In a Chapter 13 bankruptcy, you might be able to keep the entire amount if the plan payments are big enough. The bottom line is that you have a complex issue that should be discussed with a local bankruptcy attorney. If you don't have one, get one.