Parker Waichman LLP

Filing for Bankruptcy Could Affect Injury Settlements

(LAW JOURNAL NEWSLETTERS) — Bankruptcy law is extremely complicated. On the one hand, bankruptcy laws are designed to help people get out of debt who cannot get out. Bankruptcy laws help give the person in debt, who is called the “debtor” under the U.S. Bankruptcy Code, a new beginning financially. On the other hand, creditors, […]

Filing for bankruptcy could affect injury settlements

Bankruptcy and injury settlements

(LAW JOURNAL NEWSLETTERS) — Bankruptcy law is extremely complicated. On the one hand, bankruptcy laws are designed to help people get out of debt who cannot get out. Bankruptcy laws help give the person in debt, who is called the “debtor” under the U.S. Bankruptcy Code, a new beginning financially. On the other hand, creditors, which is the label give those to whom money is owed by the debtor, have a chance to recoup some of their losses because they were not paid. The debtor holds an obligation to explain all of the losses and assets they have when filing a bankruptcy petition. A recently published article in the Law Journal Newsletters addresses how the timing of a product liability injury settlement could negatively affect a bankruptcy filing.

The article discusses a bankruptcy case involving a woman from New York. She filed a petition under Chapter 7 of the Bankruptcy Code. She declared all of her assets and losses as required by law, and the Bankruptcy trustee closed the case.  Five years before the petitioner filed for bankruptcy, she had a pelvic mesh sling implanted. She filed her bankruptcy petition without disclosing the possibility she might have a potential legal claim against the medical device manufacturer that made the pelvic mesh.

About five years after she filed the bankruptcy case, the woman learned that she could have a legal claim against the maker of the pelvic mesh after the FDA issued a warning about the dangers associated with pelvic mesh. The woman filed a claim with the manufacturer of the mesh even though she did not sustain an injury. She settled the case with the medical device manufacturer for just over $100,000.00.

The bankruptcy trustee who presided over her filing reopened the case and argued that the debtor should have declared the potential settlement as an asset. Through years of litigation, the court ruled in her favor. She won because she did not sustain any injuries from the mesh and only found out about the possibility of a claim because of the FDA. The case would have turned out differently if she filed a claim because of an injury from the pelvic mesh.


What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
I am very grateful for the extraordinary service I received at Parker Waichman. Thanks to Melissa and Jorge for all their help
Blas Diaz
a year ago
5 Star Reviews 150
I recommend them, very good job! thanks to Jorge Peniche and Michelle Pabon for always being attentive and helping with any questions and concerns.
Eric Andujar
4 months ago
5 Star Reviews 150
Exceptional service ! Extremely knowledgeable. I was treated we respect and dignity everytime I spoke with the staff at Parker Waichman. I want to also thank Gina Viti for always taking my calls and answering all my questions. She was wonderful !
Christian Doran
4 years ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038