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You fought hard to get your injury settlement. Maybe it came after a car accident, a fall, or another serious event. You hoped it would be enough to get your life back on track. But months later, the bills are still piling up, and creditors won’t stop calling.
At Sigal Law Firm, we often speak with people who have received a settlement but still find themselves drowning in debt. If this sounds familiar, bankruptcy might still be a powerful tool to help you regain control.
The Hidden Reality After an Injury Settlement
Even a solid settlement doesn’t always fix the financial damage. By the time the money arrives, you may have missed months of work, maxed out credit cards, or fallen behind on other bills. Many people also discover that medical liens, attorney fees, or insurance reimbursements take a big chunk of the total.
Medical Debt After Settlement: Why It’s Still a Problem
Medical bills can continue long after the case is closed. Follow-up visits, therapy, prescriptions — they add up fast. And if you used your credit cards to get by during recovery, that debt likely didn’t go away with the settlement.
Can You File Bankruptcy After Receiving a Personal Injury Settlement?
Yes — but timing and strategy matter. You may still qualify for Chapter 7 or Chapter 13 bankruptcy, even after receiving settlement funds. In many cases, bankruptcy can help you:
- Eliminate remaining credit card and medical debt
- Protect some or all of your settlement under exemptions
- Stop collection calls, lawsuits, or garnishments
Protecting Your Settlement in Bankruptcy
Michigan law and federal exemptions may allow you to keep some or all of your personal injury settlement — depending on how the funds were used, when you received them, and how they were classified.
An experienced bankruptcy attorney can help you structure a filing that protects what matters most.
We Understand Both Sides: Injury and Bankruptcy
At Sigal Law Firm, we understand how personal injury and financial stress often go hand in hand. Whether you’ve received a settlement already or are still waiting, we’ll help you evaluate whether bankruptcy can give you the clean break you need.
Schedule a Free Consultation
You’ve been through enough. Let’s talk about how bankruptcy may help you move forward — with peace of mind and a plan.
Call Sigal Law Firm or schedule a free consultation online today.
