According to research studies, close to half of bankruptcy filings across the country are due to medical issues, including those caused by serious injuries. Filing for bankruptcy is a complex legal process that could impact your finances for years.
Before you take this step, contact Flaxman Law Group if you’ve suffered an injury in a traffic accident, workplace accident, public place, or because of a defective product. You may qualify for benefits or may be eligible to file a claim to seek compensation that can help you prevent bankruptcy.
What Is Bankruptcy?
Bankruptcy is a legal process that lets you pay off your debts or allows you to have some of your debts discharged if you can no longer pay for them. In Florida, there are two types of bankruptcy:
- Chapter 7 bankruptcy. In this option, some of your assets are liquidated so you can repay your debts but some of your assets are protected, including your home in most cases. Unsecured debts that aren’t paid off by liquidating assets are discharged.
- Chapter 13 bankruptcy. This type of bankruptcy is a repayment agreement, where you will usually have three to five years to repay your loans. Your assets are protected.
Both types of bankruptcy give you a fresh start when you’re overwhelmed with medical debt or other types of debt after a serious workplace injury, car accident, or other type of injury. They also protect your assets, so you don’t lose everything.
There are some drawbacks, however. A bankruptcy will impact your credit score for years, which will make it harder to qualify for financing, get an apartment, or even get some types of jobs. In some cases, not all your debts will be discharged, and the remaining amount can still be very difficult to pay, especially if you’re injured and unable to work. A bankruptcy can also have an impact on your personal injury claims since the proceeds of your claim are considered assets when you file a bankruptcy.
Because of these drawbacks, it’s important to speak to a personal injury attorney in South Florida if you’re considering filing for workers’ compensation or thinking about filing a personal injury claim. An attorney can explain whether filing a claim can help you secure the financial resource you need to pay your medical bills and creditors. He or she can also work to protect your personal injury compensation if you do decide to file for bankruptcy and also file a claim.
If you’d like to speak to a personal injury attorney about your financial and legal situation, contact Flaxman Law Group for a consultation. Our legal team works in Miami, Homestead, and Hollywood, serving the entire South Florida community. We’ve recovered over $100 million for our clients, in many cases helping them pay their bills and rebuild their lives.
Most of all, our compassionate, family-based team understands how challenging a serious injury can be. We’ve worked with thousands of clients who worried about their financial future because of an injury. To make a difference, we offer consultations to anyone who is injured and who may have a claim. We discuss your situation, how much your injuries could cost, and whether a legal claim could be a viable option for you. Reach out today and let’s start discussing your injuries in detail.