If I filed for Chapter 13 about 3 years ago but was in a car accident last year and am going to be geting a settlement from it, do I have to send it to my trustee?

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If I filed for Chapter 13 about 3 years ago but was in a car accident last year and am going to be geting a settlement from it, do I have to send it to my trustee?

Do I need to tell them?

Asked on January 30, 2013 under Bankruptcy Law, Oregon

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Ok so the bankruptcy code does give limited protection for personal injury awards or settlements but you have to list the claim in order to use the exemptions.  Here the PI case arose after the bankruptcy but you still need to disclose the suit and settlement with the trustee.  Otherwise there could be an issue with the discharge.  Good luck.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Good question. Prudence suggests that you advise your bankruptcy trustee about the settlement that you will be receiving from the personal injury action that you were in. However, ordinarily settlement proceeds from a personal injury matter are to reimburse the inured person for his or her loss and are not subject to being grabbed by a bankruptcy trustee in a Chapter 13 proceeding.


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