The Statement of Financial Affairs portion of the Bankruptcy Petition specifically asks in question 9 if you have been involved in a lawsuit, court action or administrative proceeding in the last year. This includes personal injury lawsuits as well as all other types of legal actions.
Paragraph 33 of Section A/B (asset section) of the Bankruptcy Petition requires that you disclose “Claims against third parties, whether or not you have filed a lawsuit or made demand for payment”, In the examples, it specifically lists “accidents”. In Colorado the proceeds are generally protected by exemption statute 13-54-102(1)(n) and at least one court decision.
(n) The proceeds of any claim for damages for personal injuries suffered by any debtor except for obligations incurred for treatment of any kind for such injuries or collection of such damages;
Failure to disclose a personal injury action may prevent you from pursuing the action because the insurance company involved in the case may request dismissal as a result of it not being disclosed in your Chapter 7 or Chapter 13 Bankruptcy.
You should always consult with your bankruptcy attorney regarding your specific situation before filing bankruptcy.