My wife and I recently filed chapter 13 about 2 weeks ago. We have our interview with our trustee in about 2 weeks and then our court date a few days after that. My wife was in a car accident this past weekend and she was rear ended, she has had some some injuries and went to the doctor for these. If we retain an attorney for a lawsuit, would any settlement be taken by the courts and given to our creditors? Are we still obligated to tell our bankruptcy lawyer about this even though we have already filed?
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Generally, in a chapter 13, they don't take settlements, however, a lot will depend on your state's exemptions. But the fact that your in a Chapter 13 and the accident occured after you filed, you should be Ok, but no gaurantees. If you have an attorney, you want to discuss the issue with them. Generally, most of the money goes to pay the doctors that provided treatment and since the doctors are post-petition debts, they recieve a priority over other debts in your plan.
Long and short of it, get you spouse the treatment they need, the bankruptcy and lawsuit will take care of themselves.
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