i have a pending personal injury lawsuit and i will be filing bankruptcy with in the next week. the personal injury suit was filed in late june, and i don't really think i'll be seeing any money from that for at least a year or more. how long does the trustee have before they can't take any of that money?
The Trustee has no time limits to prevent him/her from taking the money from your personal injury claim, so don't expect this to be a loophole. The Trustee will wait forever, if necessary. Nevada exemptions do provide some protection of any money you are awarded, but you have to claim it in order to receive this exemption.. I would recommend you consult Reno attorney Harold Comanse for representation.
Hope this perspective helps!
If you are planning to file bankruptcy soon, you should consult with an experienced bankruptcy attorney to review this issue and others.
Personal injury claims that exist on the day go filing bankruptcy are considered assets.
To the extent that the asset exceeds applicable exemptions, then the excess is the property of the estate, meaning it belongs to the trustee to administer.
There is no rule that sets how long this time period is, to administer the asset.
General legal advice is offered for educational purposes only. A consultation with a qualified attorney is required to determine specific legal advice as to your situation and applicable law. We are a debt relief agency and we help people file for relief under the bankruptcy laws.
Bankruptcy cases can stay open for over a decade waiting for the PI case to be settled. The trustee owns the suit when you file, so you really need a good attorney to guide you. Go to www.nacba.org to find someone.
Personal Injury Lawyer
If you have resided in the State of Nevada for at least two years prior to filing Bankruptcy, you should be able to exempt $16,150 of the PI claim. You may also consider alter the timing of your BK.
Car / Auto Accident Lawyer
valuable to the estate. The bankruptcy petition specifically asks debtors to list "all suits and administrative proceedings to which the debtor is or was a party" within the last year. Debtors have a second opportunity to disclose pending and possible lawsuits at the “341 Meeting.” At the 341 Meeting, also called the “Meeting of the Creditors,” the trustee questions the debtor under oath about the truthfulness of the information contained in the bankruptcy petition.
Under Chapter 13 (unless your confirmed Plan says otherwise) all of your property remains property of the bankruptcy estate until your discharge is issued. That includes the personal injury lawsuit. You may settle only with court approval, and only on terms satisfactory to the court. Whether the settlement can be taken or not is a question of exemptions; you need to speak with your attorney about that.
Bankruptcy law requires debtors to disclose pending and possible lawsuits because they may be valuable to the estate. The bankruptcy petition specifically asks debtors to list "all suits and administrative proceedings to which the debtor is or was a party" within the last year. Debtors have a second opportunity to disclose pending and possible lawsuits at the “341 Meeting.” At the 341 Meeting, also called the “Meeting of the Creditors,” the trustee questions the debtor under oath about the truthfulness of the information contained in the bankruptcy petition.
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