The #1 Rule in Bankruptcy is that you must disclose everything!! That means that proceeds from a personal injury case have to be listed on Schedule B of your filing. Even if you do not have a settlement offer yet and your injury case is pending, it is still a possible source of recovery and a claim that must be listed. The funds or claim become part of what is known as "the bankruptcy estate". The good news is that, in Illinois, so long as the claim is properly claimed as an exemption - either all of it or a part of it can be protected (meaning you can keep all or some of it). But you must, must, must list it. If your bankruptcy lawyer is thorough, he or she will have asked you if you have a personal injury claim pending and will know what to do with it. Don't forget to also list all of your medical bills associated with the accident on your bankruptcy schedules!