As a bankruptcy attorney, I am often referred clients who have extensive
medical and credit card debt from the attorney’s that are pursuing a
personal injury claim on their behalf. While it would be ideal for the
injury claim to be resolved prior to filing bankruptcy, often times the
debt collectors harass a client to the point that a bankruptcy case is
filed out of the client’s need to end the harassment, much to the
chagrin of their PI attorney.
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Another twist pops up when you file for bankruptcy after divorce. When you split the community debt with each party taking a certain split of what is owing, that technically does not leave the other party free from those debts.
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