LOST WAGES...exempt?

I have gone through my 341 and I was discharged last month. My question is if I were to collect on some lost wages from (98-00) in a lawsuit that I was involved in (pre-filing) are those earnings exempt? I live in TX...any help is appriciated

Thanks

I am suprise either you trustee didn't ask u that or on the filings there wasn't a question that pertained to that because I remember answering it.

But if I would guess since your discharged and done with the BK then that's all yours.

the trustee did ask me about it and I told him. this case had been going on for almost 4 yrs at the time, it just now is getting to the settlement phase. the trustee didn't tell me to do anything. he asked what is what for (lost wages/overtime) and how much (who knows?)

I have gone through my 341 and I was discharged last month. My question is if I were to collect on some lost wages from (98-00) in a lawsuit that I was involved in (pre-filing) are those earnings exempt? I live in TX...any help is appriciated

Thanks

*If* the lost wages that are recovered during a lawsuit are considered a windfall *and* you receive the wages within 180 days of the date of discharge, then your trustee can come after that money and distribute it to your creditors. Check with your bk lawyer to see if this is the case in your situation.

the trustee did ask me about it and I told him. this case had been going on for almost 4 yrs at the time, it just now is getting to the settlement phase. the trustee didn't tell me to do anything. he asked what is what for (lost wages/overtime) and how much (who knows?)

The Trustee may not be interested. He may have taken a calculated risk in his mind that you wouldn't see much, if any money. Especially if this settlement is the result of a Class Action Lawsuit. He may have decided it wasn't worth the hassle and let it go.

Seems, the magic number that Trustees go for ranges from $1K to $2K. Less than that, they let it go. More than that and they are interested.

When the agreement is reached, are you gonna receive more than $2K for your part of the settlement?? And will you physically get the money within 180 days of the day you filed??!!

I do not know how much it will be or when it will be distributed (if at all). I've been all over the net and I found things that say future earnings are exempt and some lost earnings are exempt also but it is so hard to tell.

I'm going to have to ask my lawyer and pray for the best.

Odds are, because your in TX, there are probably a number of ways to exempt the funds, so I am wouldn't be worried.

And on a side note to clarify the "windfall" issue. Not just anything counts as a windfall, a debtor windfall that arises within 180 days of the date of filing is limited to Bequests, devises, inheritance; proceeds or distribution of assets of a property settlement resulting from a divorce or domestic property settlement, and benefits of a life insurance policy or death benefit plan.

The reason this particular asset (the lost wages) may be subject to the BK estate is because the right to it arose before the date of filing BK. So it's not a windfall, it is merely part of the BK estate. For example, if you are in a car accident 2 years before you file BK, and the case settles 1 year after you file BK, the money would be subject to the BK estate (assuming it is non-exempt) because the event that gave rise to the claim (the car accident) occurred before you filed BK.