What Happens to Lawsuits You File During Bankruptcy
When you file for bankruptcy, lawsuits you’ve initiated—like personal injury or contract claims—become part of the bankruptcy estate.
Chapter 7: The trustee may control the lawsuit and use any recovery to pay creditors, though exemptions can let you keep part.
Chapter 13: You usually maintain more control, but proceeds may affect your repayment plan.
Disclosure: You must list all pending lawsuits in your bankruptcy papers, or risk losing your claim.
Bankruptcy doesn’t erase your right to sue, but it shapes how any recovery is handled.
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