are personal injury awards exempt in chapter 7.

The right to the proceeds of the personal injury lawsuit become property of the estate and, upon the filing of the bankruptcy, the Trustee succeeds to any right of the debtor in the lawsuit (but an exemption for at least a part of the proceeds may apply).

The Trustee may pursue or abandon the personal injury lawsuit depending on the Trustee’s judgment of its value and benefit to the estate.  If the lawsuit is likely to bring into the estate more than $7,500, plus payment of any bona fide liens, and any attorneys fees, the Trustee may decide to pursue the lawsuit.  In deciding whether to pursue or abandon the personal injury lawsuit, the Trustee will also take into account the amount of debt that has been incurred by the debtor to debt as well as the burden to the estate in pursuing the lawsuit.