1. How Will Bankruptcy Affect My Personal Injury Case?
If you’re filing a personal injury claim in Oregon, and you have recently filed for bankruptcy, you
should let your Portland personal injury attorney know from the very beginning that you have also
filed for bankruptcy.
Can I still file a claim?
The fact is, if you have been injured in an Oregon automobile accident, or when you were
cycling or simply walking across the street, you can still pursue damages in a personal injury
case, whether or not you have filed for bankruptcy. The real question is what will happen to any
damages you receive in the event of a successful claim being made. As a general rule, and bearing in
mind that a number of exemptions and exceptions exist, the following will apply to your personal
injury claim in conjunction with your bankruptcy claim:
• The bankruptcy court will enquire as to the nature of your settlement, and how much of
that settlement will go towards paying off your bankruptcy debts.
• Your right to recover damages for personal injury is part of your estate.
• Any money you recover will normally be used to help pay off your creditors.
• If you do not claim your injury as “property” in your bankruptcy petition, you may be
judicially stopped from bringing your personal injury lawsuit in the event you come out
of bankruptcy.
Exemptions
A number of exemptions to the above rules also apply to a personal injury claim in Oregon made by
someone who has also filed for bankruptcy. Those exemptions include:
• Worker’s compensation claims. If you were injured at work and have made a worker’s
compensation claim, your right to receive compensation is fully exempt from bankruptcy
rules and regulations. You have the right to receive full compensation in worker’s
compensation awards.
• Your right to recover under laws that compensate victims of crime is likewise fully
exempt from standard bankruptcy laws.
• Personal injury damages of up to $20,200 will not be subject to bankruptcy laws if you
opt for federal exemptions.

2. • Damages for pain and suffering are not exempt and will be included as part of your
bankruptcy estate to pay creditors.
What really matters when filing a personal injury claim in Oregon is when the injury occurred, not
when the lawsuit is filed. In other words, if you were injured in an accident yesterday and file for
bankruptcy today, then file a personal injury lawsuit tomorrow, the bankruptcy estate owns your
rights to recover for those injuries, because you filed the lawsuit after filing for bankruptcy.
The best advice is to keep your personal injury attorney fully up to date if you are considering filing
for bankruptcy. Once they know what’s happening, they can do their best to protect your present
and future financial interests.
What if someone is suing me, and I’m filing for bankruptcy?
Let’s say the situation is reversed. You’re the person who is being sued in a personal injury lawsuit. It
couldn’t have come at a worse time, because you’ve just made the decision to file for bankruptcy.
What now?
Once again, the key is communication. It’s critical to let your attorney and the courts know
that you have initiated bankruptcy proceedings. Under normal circumstances, you may be
exempt from paying damages if you have filed for bankruptcy, but any of the following could
apply:
• The plaintiff may attempt to find relief and continue to prosecute the case even during
the bankruptcy proceedings.
• The plaintiff may wait it out until your bankruptcy case is finished, then re-start
proceedings against you. This tactic has been known to backfire and such lawsuits may
be dismissed in their entirety.
• The plaintiff could attempt to move their injury lawsuit to the bankruptcy court.
In some cases, the person claiming bankruptcy could file a counter-claim against the plaintiff. It’s not
unusual for two parties to be held at least partially liable in a personal injury claim in Oregon. In
certain instances, you could actually win your counter-claim and the plaintiff’s claim could be
dismissed, leaving you with a positive cash settlement, even though you didn’t bring the original
claim.
Clearly, this is a complicated area. Filing for bankruptcy can certainly have implications for a personal
injury claim in Oregon, but should not prevent you from filing a personal injury lawsuit if you’ve been
injured through someone else’s negligence. By the same token, if you’re the person who is being
sued, and you are thinking of filing for bankruptcy, you may be protected from having to pay out a
large settlement. In either case, the key to protecting yourself is keeping your Portland personal
injury lawyer fully informed at all times as to the status of your bankruptcy proceedings. An

3. experienced attorney will have your best financial interests at heart, and they can show you how to
get through a personal injury claim in the most satisfactory way for all concerned.