News & Insights

Can you claim personal injury compensation if you have been declared bankrupt?

Yes, you can. You will need to obtain the consent of the Trustee who is dealing with your bankruptcy. It is likely that you will get the necessary consent as recovering compensation may help to pay off at least some of your debts. 

What is bankruptcy?

There are two main types of bankruptcy:-

1. When one or more of your creditors has gone to court and obtained a declaration of bankruptcy; and
2. When you sign a Trust Deed in favour of your creditors

What happens if you claim or you are awarded personal injury compensation when you are bankrupt?

Personal injury compensation can consist of:-

1. compensation for financial loss such as loss of earnings; or
2. compensation for injuries

If you recover compensation for financial loss then this will go to your creditors to help pay off your debts.

But any compensation you recover for your injury is ring fenced and so you get to keep it. 

So even if you are bankrupt if can still be worthwhile claiming personal injury compensation.

We have previously dealt with such a case, and our client successfully kept the compensation she was awarded for her injuries.

How we can help?

Our specialist personal injury team can advise you about when it is in your interests to claim personal injury compensation even if you are bankrupt.. You can either contact us by using our online enquiry form, or by calling us on 0800 988 8082