What to do about a lawsuit settlement anda bankruptcy filing?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do about a lawsuit settlement anda bankruptcy filing?
I recently settled a back wage case for roughly $80,000 but have not signed or filed final papers. My wife and I are considering bankruptcy due to extensive bills, much of which is medical. I live in CA now but I am going to be relocating to TX soon and my wife and I want to file now. Should we wait until after we relocate to file? And what impact will this all have on the settlement money that I need to relocate and pay back both our parents money they have loaned us to survive through job loss and recession issues?
Asked on September 28, 2011 under Bankruptcy Law, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I think that it would be best for you to seek counseling from an attorney in your area on the matter. This question is not an easy one to answer and frankly there are concerns here about transfer or paying off creditors that may be considered to be fraudulent at first glance (paying family members first with in a certain time frame of filing is not permitted and the trustee can in fact ask for return of the funds) and no attorney can advise you to do that. Also, you should look at which state laws may be more beneficial versus the federal bankruptcy laws. There is nothing wrong with doing that and a little planning can go a long way. Good luck to you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.