Your pending personal injury lawsuit will become an asset in the bankruptcy proceeding and the value of your case will be taken into account in determining whether you are in fact insolvent and the payment to your creditors.
More importantly, the bankruptcy trustee assumes control of your case and decides whether it should be settled or tried and, if it should be settled, how much it should be settled for. You will have the right to speak your opinion about such matters, but at the end of the day the bankruptcy trustee and the bankruptcy judge will make these important decisions.
Thus, filing bankruptcy will cause you to lose control over you case.
This does not mean that you should not file bankruptcy – it may be necessary. However, before you file bankruptcy be sure to talk with your personal injury lawyer and get his or her input as part of your decision-making process.