Procedure When Informed Debtor Has A Personal Injury Action, or Any Other Legal Action Where the Party, As Plaintiff, Has Retained or Will Be Retaining an Attorney

Procedure When Informed Debtor Has A Personal Injury Action1. FIND OUT THE NAME OF THE ATTORNEY AND EMAIL ADDRESS OF THE ATTORNEY

2. EMAIL HIM THE PREPARED LETTER ALONG WITH THE SAMPLE FORMS

3. THE ATTORNEY MUST COMPLETE THE REQUIRED FORMS, STARTING WITH:

  1. MOTION TO EMPLOY SPECIAL COUNSEL
  2. THE AFFIDAVIT OF PROPOSED SPECIAL COUNSEL
  3. ORDER TO EMPLOY SPECIAL COUNSEL

4. THE ABOVE MOTIONS AND ORDERS SHOULD PROPERLY BE GRANTED BEFORE THE PERSONAL INJURY ATTORNEY OR PLAINTIFF’S ATTORNEY FILES THE MOTIONS AND ORDERS DESCRIBED IN NUMBER 5.

5. WHEN THE PERSONAL INJURY ACTION OR OTHER LAWSUIT HAS BEEN SETTLED, THE PERSONAL INJURY ATTORNEY, OTHER ATTORNEY REPRESENTING THE PARTY, AS PLAINTIFF IN ANY OTHER LEGAL ACTION MUST PREPARE AND APPROPRIATELY, THEN FILE:

  1. MOTION TO COMPROMISE CONTROVERSY WITH [NAME OF DEFENDANT]
  2. ATTACH TO THE MOTION TO COMPROMISE CONTROVERSY, THE PROPOSED OR EXECUTED SETTLEMENT AGREEMENT BETWEEN THE PLAINTIFF(S) AND DEFENDANT(S).
  3. ORDER GRANTING MOTION TO COMPROMISE CONTROVERSY WITH [NAME OF DEFENDANT]

THE PROCEDURE DESCRIBED ABOVE IS THE PROPER PROCEDURE FOR EMPLOYMENT OF PROFESSIONALS IN BANKRUPTCY. IT IS THE DUTY OF PERSONAL INJURY OR PLAINTIFF ATTORNEYS TO INVESTIGATE WHETHER THEIR CLIENTS ARE IN AN ACTIVE BANKRUPTCY OR EVEN CONTEMPLATING THE FILING OF A BANKRUPTCY. ANY MONIES DISTRIBUTED BY THE PERSONAL INJURY OR PLAINTIFF ATTORNEY WITHOUT AN EXPRESS ORDER OF THE ASSIGNED BANKRUPTCY JUDGE, CAN SUBJECT SUCH PERSONAL INJURY ATTORNEY OR PLAINTIFF ATTORNEY TO NUMEROUS SANCTIONS AND PENALTIES.

HOWEVER, IF THE PERSONAL INJURY ATTORNEY OR PLAINTIFF ATTORNEY FOLLOWS THE PROCEDURES WRITTEN ABOVE, THE BANKRUPTCY JUDGE WILL TYPICALLY ORDER THAT THE MONIES BE DISTRIBUTED IN A MANNER SIMILAR TO WHAT OCCUR IF THE PLAINTIFF WAS NOT IN AN ACTIVE BANKRUPTCY.

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