If you are hurt in a car accident during your chapter 13, tell your bankruptcy lawyer.

During the five (or three) years of your Chapter 13, you are required to update the court if you’re injured in a car accident.

I don’t see that written in the law anywhere, but judges say that’s so. Not doing it can really hurt you–especially if you’re hurt in a car accident. (Or medical mistake.)

Hurst in a car accident during your Chapter 13? Tell your bankrutpcy lawyer.

Under Virginia law, money you get from a personal injury–like a car accident or medical mistake--belongs to you. It does NOT belong to the bankruptcy court.  But it only belongs to you if you claim it belongs to you. And you have to tell the court about it so you can then claim it.

If you don’t tell the court about it, then it belongs to the court. (Does that make your head spin? It is tricky.)

The bankruptcy court is probably NOT going to notice on their own. But the insurance lawyer for the opposing party will. Because of that accident, you might have a lot of money coming to you. But when the insurance lawyer sees your bankruptcy–and they look–poof, that money is gone.

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