If you file bankruptcy now, the claim - the right to pursue this settlement from the accident - is an asset you must disclose in your bankruptcy. You may be able to exempt, or protect part or all of this asset from liquidation in bankruptcy, but it will take more facts than are presented here to make that determination. I suggest you contact and meet with a bankruptcy attorney to discuss your case, and whether filing now might result in the loss of the right to collect the settlement. Most attorneys will provide you with an initial, free consultation and most will pre-screen your case at no cost to ensure that you qualify and that this asset will not be liquidated (taken away) in bankruptcy. I've been filing cases for 15-plus years in the Central District of California, Santa Ana Division (where your case will be filed based on the zip code you gave), and I can assure you that all of the trustees here will jump on an asset like this unless properly exempted.

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