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Personal Injury Award with Bankruptcy

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N

NMGinc

Guest
We are in Virginia. A close friend of mine was involved in an auto accident over a year ago and filed a personal injury claim while he was undergoing chiropractic care for the injury. Because of a large number of debts incurred with his exsouse he was forced to file ch 7 bankruptcy and included these chiropractic bills which were never paid by the other party's insurance company. A settlement has been reached in the PI case, but his money is being held up until the 60 days after the 341 hearing, because the doc is claiming that he is entitled to payment from the proceeds of the award, claiming this because my friend signed an assignment of benefits form in the doc's office. Both his bankruptcy attorney and PI attorney feel the doc doesn't have a case, but that he could try to pursue it. Does anyone out there know of any similar cases and their disposition? My friend really needs this money, which won't even pay the doc's bill.
 



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