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Why is it important to tell your attorney if you've recently declared bankruptcy?

 

A: The answer is going to surprise you. If you have recently declared bankruptcy, then you are not, on your own, entitled to bring a lawsuit seeking compensation for your injuries. Instead, you must first get permission from the bankruptcy court in order to proceed forward with a lawsuit seeking compensation. That would apply for a car accident case, a medical malpractice case or even a wrongful death case in New York. Once the bankruptcy court has given you permission to proceed forward, then there are various procedures that will allow you to hire an attorney. Those procedures often involve working with the trustee who is supervising your bankruptcy matter and working out a fee arrangement with the bankruptcy trustee. If you fail to disclose the fact that you have declared bankruptcy recently, and you have already started your lawsuit, it is quite possible that the defense lawyers will ask the judge to dismiss your case because the appropriate procedures were not properly followed. If true, your case can be dismissed. If the time limit for you to file a lawsuit has finished, you will lose the opportunity to then bring a timely lawsuit against the people who have caused your injuries. The bottom line is that if you have declared bankruptcy recently, you must tell your attorney during your first meeting.