insurance settlement and chapter 7

[PRN]

I have been notified by an attorney we had representing us in an auto accident claim that ended 3 yrs ago that we have a settlement of approximately 16000 comint to us. Why we never notified before this I will never know. Question: How is this going to affect our chapter 7 filing? Do we have to declare this money? Will the trustee take it? We took our case to the bk attorney monday of this week but have not been told it has been filed. Thank you for help.

[HHM]

Call your BK attorney ASAP and inform him. Since the accident that gave rise to this settlement took place before you filed BK, the money would become property of the bankruptcy estate so yes, the trustee could use this money. However, some states have exemptions for personal injury claims.

[Minnymouth]

Has your case been filed yet???
Did you get the notifcation of the insurance settlement before you filed?

If you did, then the Trustee can possible seize this "asset" and use it to pay creditors....

Touchy situtation here, what does your attorney say???
Be sure he knows...... because at the 341 meeting the Trustee will ask you under oath if you have received or going to receive any refunds or claims.

Let us know what your attorney says......

Sometimes claims on injuries are exempt in BK I've been told, so it may not be an issue to worry about.

Only your lawyer can advise you on this..

Let us know,

Minny

[PRN]

Minny, thank you for feedback. I was notified today by phone but don't know the exact6 amount because insurance attorney is in process of closing account. I spoke to the bk atorney today after I found out and he figured our case and stated the full amount would be considered exempt due to personal injury lawsuit. He did suggest we get the money before we filed next Wednesday but stated it would still be considered exempt. Still makes me nervous. Why oh why did our attorney wait this long to get in touch with us. We did not even know we had funds coming. Can you believe? This money has just been sitting there for over 3 yrs!!!

[Minnymouth]

How wild is that...... and to think those funds might have prevented you from filing BK.....

Keep us posted,

Minny

[PRN]

Yes, I think of how many months we have struggled to meet those CC payments and medical bills and I have even tried to work OT to make ends meet. We have had perfect credit all of our lives till this month. now I am off work and pending surgery, facing bk, maybe the timing is all in God's plan. I will keep you posted throughout. I am so grateful for this site, I sit here with tears streaming down my face as I am sure many others here have gone through, but this site has helped me educate myself with the right questions to ask my attorney and also to know that "this too shall pass". "God is good all the time, and all the time God is good."