Post 341 auto accident question

[Skipper]

Hi all-

First of all, I appreciate any thoughts you all may have...

I filed for Chapter 13 in June of 2010. My 341 was August 2010. Plan confirmation received in November 2011. In September 2011 (16 months post filing) I was involved in an auto accident (other driver was a fault), and as a result I incurred approximately $24k in medical bills. As of now I have retained a PI attorney and I am in the process of trying to settle my claim.

My question is this (I will also ask my bk attorney); since the accident occurred "post petition" (16 months after filing), what is the bk law concerning the Trustee's ability to claim any/all of negotiated settlement monies? Would it matter if the settlement was for past/future medical payments and lawyer's fees? This applies to AZ. As an aside, in my confirmation order the Trustee only requires that each year I submit copies of my filed Federal and State income taxes.

Thanks in advance,

Skipper

[ValleYum]

Since it answers your question and is the same scenario (car accident occurring post-filing date in a Chapter 13 case), I am quoting Des from this thread: http://www.bkforum.com/showthread.ph...ants-to-settle

The claim for injuries is an asset of the estate and is not exempt. 75% of lost wages is exempt. Propety damage claim can be used to fix property of the estate. Post petition medical bills should be paid by insurance up to policy limits. Discuss with your bk attny before proceeding further.

Des.

Hope this helps!

[Skipper]

Thanks!

I read that thread earlier... still kind of unclear to me. I guess what I am am wondering is this; since the accident occurred after the 341 meeting, and my confirmation order does not require anything from me going forward with the exception the submission of my annual state/federal tax statements, under the bk code is the Trustee potentially entitled to any settlement monies?

[ValleYum]

Had your confirmation order been issued as of the date of the accident?

I found a post by Des on another site (LOL - he is everywhere!) - let's see if this helps:

[Lissy]

I think anything above and beyond medical bills would be fair game. When I had my car accident, granted it was before my 341, but they told me in my 341 that if I sued and was awarded any money, I would have to pay it into the plan. My plan was confirmed as is, without any mention of a potential lawsuit settlement (even though that was one of the TT's objections to it). However, I don't think it matters when the accident occurred or if it's specifically called out in the confirmed plan. There is general language in there usually that covers large windfalls of cash. At least in mine there is. But obviously, whenever you settle your claim, you need to tell your attorney how much you are getting and let him/her advise you on whether you need to report it to the TT.