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CAN A CHAPTER 7 BANKRUPTCY TRUSTEE KEEP MONEY RECEIVED FROM A SETTELEMENT

Beaumont, TX |

I FILED CHAPTER 7 BANKRUPTCY OVER A YEAR AGO . I MENTIONED MY PENDING LAWSUIT FOR .. SUING A DRUG COMPANY FOR SIDE AFFECTS OF A MEDICATION CAN THE TRUSTY KEEP ALL OF MY SETTLEMENT MONIES

Attorney Answers 4

Posted

YES!!! And-- this is a question you should be discussing with your attorney. If you have been foolish enough to get this far without legal assistance, you are about to find out how costly that choice can be. Retain counsel at once. It is you only hope for keeping any part of your settlement (and it could be too late. If you do not know an experienced bankruptcy lawyer, use the attorney-finder at www.nacba.org.

Best wishes for a favorable outcome, and please remember to designate a best answer.

This answer is offered as a public service for general information only and may not be relied upon as legal advice.

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Posted

YES!!!!!!!!!!!!!!!!!!!!!!! Can and will take the entire settlement except for whatever exemption amount is allowed in Texas. Good luck.

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2 comments

Paula Brown Sinclair

Paula Brown Sinclair

Posted

But the exemption must be properly claimed, and this late date some finesse may be needed to defend an aggressive trustee.

Diane L Gruber

Diane L Gruber

Posted

I agree! Every trustee is a little different, as are the trustees in each jurisdiction.

Posted

It depends. If you listed the suit in your schedules, and the trustee did not issue a discharge, or carved out the claim, or you didn't list the suit at all, then the trustee can absolutely take it. But if you have been issued a discharge and the case has been closed, the trustee is precluded. Timing matters. Pay an attorney to look at the issue.

I'm not your attorney; my answer includes assumptions. If you want me to be your attorney, I'm easy to find.

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1 comment

Diane L Gruber

Diane L Gruber

Posted

In Oregon the first $10,000 of the lawsuit winnings go to the debtor, the rest is taken by the trustee, who distributes it to the creditors.

Posted

Possibly, you may be able to keep a portion of the settlement if it was listed and exempted in your Bankruptcy Schedules. You should contact a Bankruptcy Attorney to review your filings and help determine what amounts you are entitled to.

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