We have been considering BK for the past year or so, since my husband's income has been cut in half. I have $20,000 in CC debt and am in hardship programs with all of them. My hubby has over $40,000 of debt that is not dischargeable in BK and we are trying to pay on it, but it’s been difficult and our payments really don’t even make a dent in the balance owed. Our thinking is, if we file BK we will have more money to put towards paying and/or settling the non-dischargeable debt.

This past March my husband got into a car accident and is currently being treated for severe neck and back pain. We anticipate he will continue treatment for another 3 to 6 months, and we will (hopefully) receive some type of a monetary settlement after all the medical bills are paid in about a year or so. There is no lawsuit, as the other person’s insurance company has accepted all liability for the accident.

My question is how would the money from the PI settlement affect a BK filing? Obviously, my first choice would be to use that money pay down our debt, but I just don’t know if we can hang in there that long before filing BK. If I file BK and then we get some money, will that mess things up somehow?

Thanks!

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When you file bankruptcy, they will ask if you have any settlements coming or are you party to any lawsuit. When i filed, I was told that since my PI settlement was more than a year out and nothing filed not to mention it.

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Thank you!

What about if tried to file sooner rather than later and my BK would be discharged before the PI case was finished?

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