Can a person being sued file bankruptcy as to not pay for loss of limb and has no insurance or comp.

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Can a person being sued file bankruptcy as to not pay for loss of limb and has no insurance or comp.

My son lost whole left arm at work at a tree service. They have no workmans
comp nor any insurance. Owner wants to settle out of court for 20,000 but
with 4,000 to Lawyer and 1/2 of remaining to Medicare bill. Which will
leave him 8,000. Can he fire his attorney? Will he end up with 0 if they
file bankruptcy?

Asked on May 22, 2019 under Personal Injury, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

1) Your son can fire his attorney but still has to pay him for the work he's done so far. Depending on how much work was done, what your son ultimately settles for, and the terms of the agreement with the lawyer, that may be less than the $4,000 you indicate the lawyer will get, but it will certainly be something; having done work, he is entitled to compensation.
2) Bankruptcy (assuming the defendant is eligible for it; there are rules or requirements for filing bankruptcy, and you have to fall into the parameters) does work against a debt owed from a court case or due to personal injury. Usually bankruptcy does not 100% wipe out a debt but does reduce, possibly very drastically, what must be paid, and it is possible that if the owner's total debts (since he'd file as to all his debts) greatly exceed his assets that you son might get little or nothing.


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