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If you are filing a bankruptcy case because of massive medical bills while you are pursuing a major medical malpractice claim, you have opened quite a kettle of fish.

It is very important that you tell your bankruptcy attorney all about your medical malpractice case. To see why, click here.

The Cast of Characters

  • Your bankruptcy attorney
  • Your medical malpractice trial attorney
  • The opposing medical malpractice defense attorney
  • The bankruptcy trustee
  • Your creditors in your bankruptcy case

Each of these players have quite a bit of interest in both your bankruptcy case as well as your medical malpractice case.

You must disclose the medical malpractice case in your bankruptcy papers. You also want to claim any exemption to which you might be entitled.

The bankruptcy trustee has the right to pursue that bankruptcy case in your name

The bankruptcy trustee will want to work closely with your medical malpractice attorney

The defense attorney will take advantage of any failure to disclose the medical malpractice claim in your bankruptcy case.

Points to remember:

  • Your medical malpractice claim might be worth more than the claims in the bankruptcy estate
  • If that’s true, then the bankruptcy trustee can’t settle the case without your permission and authority. If he tries to do that, you need to scream bloody murder
  • It’s better to work cooperatively with the trustee through your medical malpractice attorney to get the largest recovery possible.
  • Remember that many of the claims in your bankruptcy case might be medical bills which will be covered by the medical malpractice claim or settlement.
  • Don’t sell your medical malpractice claim to scam artists who want to buy it in advance on the cheap.


About David Leibowitz, Illinois and Wisconsin Bankruptcy Attorney

David Leibowitz holds a B. A. in Economics from Northwestern University and received his J.D., cum laude, from Loyola University of Chicago School of Law where he also served as Note Editor of the law review. Admitted to the Illinois and Wisconsin bars, he is the managing member of Lakelaw, an interstate law firm with offices in Chicago, Skokie and Waukegan in Illinois and Kenosha, Wisconsin. He is nationally recognized for his work in identifying and pursuing mortgage related claims in the context of bankruptcy. David is a member of both the Illinois and Wisconsin bars and has practiced in bankruptcy courts throughout the country. He is a member of the American Bankruptcy Institute where he is the Co-Chair of the Commercial Fraud Committee. He is ta frequent contributor to the ABI Journal and speaker at ABI events. He is an author and editor in chief of the American Bankruptcy Institute Fraud Manual published in 2010. He is also a member and Director of the National Association of Bankruptcy Trustees, a member and frequent speaker for the National Association of Consumer Bankruptcy Attorneys and numerous state and local bar associations. He is Board Certified by the American Board of Certification in both Consumer Bankruptcy Law and Business Bankruptcy Law. David is also the publisher of Lakeblawg, www.lakelaw.com/lakeblawg, a blog dedicated to consumer and small business bankruptcy and mortgage foreclosure defense.

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