if I am in bankruptcy and am awarded asettlement through personnal in jury would that money go into the bankru

Question

personnal injury in a car accident would it became a part of the estate if i were in bankruptcy

Answer 1

Yes, it is income and your sentence looks as though you have not filed yet.

Use the money to pay your debts.

Answer 2

In a Chapter 7 bankruptcy, you must report ALL assets of the estate when you file bankruptcy. Assets of the estate include, but aren't limited to, balances of bank accounts, automobiles, real estate, other personal property, POTENTIAL SETTLEMENTS, etc.

The allowed exclusions vary considerably from state to state. You will need to consult your state's laws to determine which assets are excludable from the bankruptcy estate. Better yet, make sure your attorney knows the situation, because he/she will be able to advise you how to proceed.

PLEASE don't do the bankruptcy by yourself. They are fraught with pitfalls for the layman who is unaware of all of the nuances of the bankrupty statute, especially the new laws since 2005.

Consult a bankruptcy attorney licensed in your state. For a referral, call your local or state bar association.

Answer 3

Under Canadian law, the bankruptcy trustee should be involved in the claim and settlement and decide what to do with the proceeds. If you receive funds without reporting it to the trustee, you could be acting fraudulently.

Answer 4

You should settle the bankruptcy before you get your settlement.

They probably couldn't take any of the money that was to go toward your medical bills, but anything else might be considered income in your state.

Bankruptcies take months, settlements take years, so you should be able to handle this.

.

Answer 5

If you are going to do it "right"; you will absolutely report this money to the trustee.

Answer 6

Talk to the lawyer that helped you get the settlment.

Answer 7

I would think so. Assets are assets.