If we are in the middle of declaring Chapter 13 and I may be getting a WC settlement soon, will the courts get that money or be in control of it?

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If we are in the middle of declaring Chapter 13 and I may be getting a WC settlement soon, will the courts get that money or be in control of it?

Asked on June 18, 2013 under Bankruptcy Law, Illinois

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 8 years ago | Contributor

Too many unanswered questions to answer fully.  Has the Chapter 13 been filed yet?  If so, was the claim listed as an asset and exempted from the estate in the schedules?   If the answer to the last 2 questions is yes, then the money is protected.  A lot also depends upon the Chapter 13 plan filed in the case.  If the proceeds were to be used to fund the plan, then they must be turned over.  If the case has not been filed, make sure that the claim is scheduled and get the case on fikle ASAP or you may put the funds received at risk as a Chapter 13 may require dedication of after acquired funds towards payment of the plan.  I'm hopeful that you have an attorney.  If not, 90 % of pro se cases fail.


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