If I am expecting a medical malpractice settlement but have a Chapter 13 in place, how much of the money has to go to the Trustee?

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If I am expecting a medical malpractice settlement but have a Chapter 13 in place, how much of the money has to go to the Trustee?

I am waiting for the malpractice case to be final and I have a Chapter 13 going on at the same time. Do I need to pay the creditor off 100% if my malpractice case is settled befor the Chapter 13 is final? I am only 2 years into my repayment plan.

Asked on August 22, 2012 under Bankruptcy Law, New Jersey

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The answer to your question lies with when do you receive the settlement proceeds from your medical malpractice matter? If after the reorganization plan is approved by the court then you abide by the plan. If before the plan is approved by court order, most likely the plan for repayment of your creditors will take into effect the medical malpractice settlement with respect to the monthly payments to your assorted creditors.


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