QUESTION
Can the trustee take any of the settlement I will receive?
Asked on Jul 18th, 2016 on Bankruptcy - Nevada
More details to this question:
I started out filing chapter 13 converted to chapter 7 and have been discharged. During the chapter 7 hearing, I told the trustee I was injured at work during the chapter 13 and was awaiting settlement.
3 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
No, the trustee can't take your workers compensation benefit. First, most states provide an exemption for workers compensation. Second, the trustee can only take assets that you had on your filing date. Even though you were in a Chapter 13 then converted to a Chapter 7, the original filing date is still in effect.
Answered on Aug 22nd, 2016 at 6:45 AM
Bankruptcy Attorney serving Madison, WI
at
Richard B. Jacobson & Associates, LLC
Update Your Profile
In all likelihood, the settlement proceeds are part of the bankruptcy estate. If you can exempt part of these proceeds under the 'wild card' or under the personal injury exemptions (or your State's equivalent) then you can protect quite a lot of money.
Answered on Aug 15th, 2016 at 5:45 AM
In order to keep property rights, you needed to list this claim on Schedule A/B and exempt it on Schedule C. Workers compensation benefits are completely exempt if you are eligible for the Nevada exemptions. However, if you fail to complete the proper paperwork, your bankruptcy trustee will gladly take every dime of your workers compensation settlement. That is how bankruptcy works.
Answered on Aug 11th, 2016 at 7:10 AM