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Are medical personal injury settlements (as a plaintiff) exempt in bankruptcy proceedings?

West Hurley, NY |
Filed under: Bankruptcy exemptions

I will answer "Yes" to the question - "Do you have any pending lawsuits" - but if a settlement is reached before or after discharge - will I lose this money. Note: I live in New York State.

Attorney Answers 2

Posted

Looks like NY has a personal injury exemption of $7500 plus you can exempt the amount of the settlement that represents lost wages. If your settlement is more than this, it can be taken even if you do not receive the settlement until after your bankruptcy is filed. Your claim, assuming it arose before the filing of the case is considered an asset that must be disclosed in your bankruptcy case.

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Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.

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Posted

I agree with Mr. Larkin that disclosure is required

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