My BK chap 7 was filled end of Oct 2019 discharged in Feb/March 2020 and now I got a class action settlement check of $200, Can I cash check, since I was not the one initiating lawsuit? I did not even find out about it until after discharge. Ty
Yes - you can cash the check.
If it were substantially more, your BK trustee would have the right to intercept it and use it to pay discharged creditors; but $200 is too small an amount to be an issue.
The Trustee is not going to care about a check for $200.00. The cost of administration would far out weigh the payments to the creditors. Cash the the check and use it to do something nice for yourself and others.
You can cash the check for the reasons stated by my colleagues. Good luck and God bless.
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You may be able to, but I would suggest first contacting the Trustee for your case (even though he/she will have now been discharged), to get their position before cashing.
The technical answer is "no" but as noted the practical answer is "yes". No one is going to bother with this due to the amount. For larger amounts in this District, the US Trustee has been reopening cases and having the trustee look into the situation. Many times that just results in an exemption claim, with the settlement going to the debtor, but not always.
But even if the $200 was not exempt (or even a considerable higher amount) no one will want to spend any time on this.
Disclaimer: This answer does not constitute legal advice. I am admitted to practice in the State of California and the Federal District Courts in the Eastern, Northern, Central and Southern Districts of California only. My experience is in those jurisdictions only. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. In reading any advice or opinion given you agree that I do not have all or the facts so that any statement here may not be complete or fully accurate. You must consult an attorney in your locale and make sure that they are fully informed of your situation and the facts of your case before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney-client relationship.
The Chapter 7 Trustee is not going to care about a $200 check you received.
If my answer is "BEST ANSWER" and/or "HELPFUL" please acknowledge and mark it so. I appreciate your comments and feedback. I have more than 25 years of successful legal experience with cases like yours. My response is often general in nature because all facts are unknown to me. Specific answers require knowledge of all the relevant facts of your case.
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