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  1. #21
    Join Date
    Jan 2006
    Posts
    37,030

    Default Re: Personal Injury Claims and Bankruptcy

    Stephen hawking made a pretty good income with virtually no use of his body other than it being a vessel to sustain his brain.



    Brian, if you want to change the laws, petition the government to do so. Until such time they change the law, we live within the laws as currently written. Many people argue a given law is unfair for whatever reason the believe it is. While there may be validity in their argument, it really doesn’t matter since the laws are what they are until they are changed.

  2. #22
    Join Date
    Oct 2016
    Posts
    1,544

    Default Re: Personal Injury Claims and Bankruptcy

    Brian, let me throw this one at you.

    Let's say you were injured a year ago and as a result were never able to work again. You were awarded $5 million.

    Tomorrow after the award you take out a loan for $5 million and default. Do you really think that what ever is left of the award should not be recoverable?

  3. #23
    Join Date
    Apr 2018
    Location
    Long Beach, CA
    Posts
    236

    Default Re: Personal Injury Claims and Bankruptcy

    Quote Quoting PayrolGuy
    View Post
    Brian, let me throw this one at you.

    Let's say you were injured a year ago and as a result were never able to work again. You were awarded $5 million.

    Tomorrow after the award you take out a loan for $5 million and default. Do you really think that what ever is left of the award should not be recoverable?
    Ask a more realistic question and I will give a better answer.

    If a person was permanently unemployed with $5M in the bank, a bank would never loan him an unsecured $5M. If they did they would use the house or yacht as collateral, repossessing them incase of default. The loan to value ratio would have to be an acceptable risk for the creditor. No collateral, no loan.

    Let me ask you a more realistic question. If a permanently disabled man filed for bankruptcy and was receiving $2,500/mo from SS disability, should a creditor be able to seize his future SS payments. How about a creditor being able to seize a person's pension, 401 and regular SS payments? It seems you already believe they should be able to hock his $1M prosthetic arm. Hey maybe they should be able to hock one of his kidneys too. They have value.

    What I see as wrong is during a regular bankruptcy, they do not go after future earnings. But in the case of a disabled person with a lump sum in his account that was earmarked for his future support, since he is unable to to earn money, they will take his 'future earnings' which lies in the form of a bank account. How fair is that? Allowing the man with a whole body to stiff his creditor and just go back to work.

    Think outside the box. Think with compassion and not resentment for those filing for bankruptcy. Think that the disabled person had his whole body taken from him. Think that the lending institution will not be hurt by a BK. They have it figured into their P&L Sheet. Don't think that if something is legal, that it is fair and just. IOW, think reasonably and independently.

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