Legal Question in Bankruptcy in California

Yes! The personal injury lawsuit was an asset that should have been disclosed in your bankruptcy papers. Failure to do so could lead to a denial of your discharge. In fact, it could even be considered perjury and that carries a fine of up to $250,000 and up to 5 years in jail. If you don't have a bankruptcy attorney, you need one. If you have one, notify the attorney about this right away if you haven't already done so.

The good news is that you might be able to exempt a sizable portion of the personal injury settlement. However, you should obtain advice from an attorney regarding amending your petition and what and how to exempt the settlement proceeds.