Filing Bankruptcy During Suit

If a personal injury client files bankruptcy during suit is the cause of action assigned to the trustee?

Answer: Yes. SeeHolbrook v. Country Mut. Ins. Co. (In re Burnett), 447 B.R. 634, 642 (Bankr.W.D.OK 2011): "A debtor's bankruptcy estate includes all causes of action of the debtor, including, without limitation, all claims for personal injury, which could have been brought on the petition date.SeeGavend v. Hill (In re Gavend),25 F.3d 1056 (10th Cir.1994);*643Wischan v. Adler (In re Wischan,),77 F.3d 875, 877 (5th Cir.1996)(a debtor's pre-petition causes of action for personal injuries sustained pre-petition are property of the bankruptcy estate);McGreevy,388 B.R. at 921.Debtor's rights to recover from third parties, including insurance companies, for damages sustained as a result of the Accident, which occurred pre-petition, constitute property of Debtor's bankruptcy estate underSection 541(a). Likewise, the Settlement Proceeds, as proceeds of Debtor's right to recover from defendant Country Mutual for damages sustained and incurred as a result of the Accident, also constitute property of the estate.

A debtor's bankruptcy estate includes all causes of action of the debtor, including, without limitation, all claims for personal injury, which could have been brought on the petition date.SeeGavend v. Hill (In re Gavend),25 F.3d 1056 (10th Cir.1994);*643Wischan v. Adler (In re Wischan,),77 F.3d 875, 877 (5th Cir.1996)(a debtor's pre-petition causes of action for personal injuries sustained pre-petition are property of the bankruptcy estate);McGreevy,388 B.R. at 921.Debtor's rights to recover from third parties, including insurance companies, for damages sustained as a result of the Accident, which occurred pre-petition, constitute property of Debtor's bankruptcy estate underSection 541(a). Likewise, the Settlement Proceeds, as proceeds of Debtor's right to recover from defendant Country Mutual for damages sustained and incurred as a result of the Accident, also constitute property of the estate."