Personal injury claims can present a complex web of challenges, especially when the claimant is facing bankruptcy. This article provides an in-depth analysis of how bankruptcy affects damages for a personal injury.
Understanding Personal Injury Claims
Personal injury claims are legal disputes that arise when one person suffers harm from an accident or injury for which someone else might be legally responsible. The responsible party’s insurance company pays money to the injured person for medical bills, pain and suffering, and other ongoing medical expenses.
The Impact of Bankruptcy on Personal Injury Claims
The Bankruptcy and Insolvency Act (BIA) does not influence the total damages payable by the Defendant, or the breakdown of those damages. However, it can result in a significant portion of the damage award being paid to the trustee in bankruptcy.
The Settlement of Serious Injury Claims
When dealing with settlements for serious injury claims, certain categories of damages are taken into account. These include:
- Pain and suffering.
- Loss of income.
- Loss of future earnings.
- Loss of ability to perform hold tasks.
- Medical treatment.
- Future care.
The injured person is entitled to keep the full amount paid for these elements.
Post Bankruptcy: Allocation of Damages
In the event of bankruptcy post-injury, the allocation of damages undergoes a transformation. Damages payable for loss of income following the date of bankruptcy are divided between the Trustee and the injured person. This revenue is termed as the “revenue of the bankrupt”. The debtor is allowed to keep 100 percent of the minimal amount of revenue required to sustain living and other expenses.
NOTE: The Trustee cannot claim any part of the settlement amount for income that would have been earned post the discharge of bankruptcy. This means that a bankrupt plaintiff can be discharged from bankruptcy with nearly all or most of the future earnings award intact.
Interpreting the Bankruptcy and Insolvency Act
Sections 67 and 68 of the Bankruptcy and Insolvency Act provide the legal backbone for these principles, as interpreted by the Courts. If you are bankrupt or contemplating bankruptcy, it is crucial to inform your lawyer at the earliest.
The Role of Legal Representation
Legal representation plays a vital role in such cases. A skilled lawyer like Geoff Aylward from Newfoundland and Labrador has a track record of successfully representing bankrupt claimants.
Bankruptcy and Personal Injury Claims: A Summation
Bankruptcy and personal injury claims can intertwine in a complex fashion. It’s important to understand the nuances involved and the impact of legislation like the Bankruptcy and Insolvency Act. While the situation may seem daunting, with the right legal advice and guidance, a fair resolution is achievable.
A Final Word
Whether you’re at the crossroads of bankruptcy and personal injury claims or simply seeking information, it’s essential to understand the legal landscape. With the right knowledge and resources, you can navigate through such challenging situations with confidence.
In summary, bankruptcy and personal injury claims may seem like a challenging intersection, but with the right understanding and legal representation, it is entirely possible to navigate the situation successfully.
