Is a post petition case of action lawsuit settlement part of a Ch. 13 bankruptcy estate?

Question: Is a post petition case of action lawsuit settlement part of a Ch. 13 bankruptcy estate? Question Detail: After filing for bankruptcy in the state of Kentucky, I was involved in a situation where I filed a lawsuit against another party (cause of action was 7 months after filing for Ch. 13 bankruptcy). With 1 year left in my bankruptcy plan, the lawsuit settled out of court. Is the settlement part of the bankruptcy estate, or is it mine since it happened after the bankruptcy filing? *- YES, absolutely it is part of the bankruptcy estate, but to what extent depends on the nature of the claim and the characterization of the settlement proceeds. *

This sounds suspiciously familiar. When you file a Chapter 13, the trustee gets information about your income and about your expenses. He then decides what you need to live (he subtracts expenses from income). All money leftover is "disposable" income and he expects you to pay it to him. I suspect your repayment plan contains language to that effect. If it does, you must pay, no matter where the money came from.

The answer to your question is surprisingly unclear. It also probably differs depending on practice of Ch 13 trustee in your jurisdiction. I recently dealt with a related question involving an inheritance. MHO a settlement this long after confirmation is not part of the Ch 13 estate, but you should seek an opinion from a lawyer who has dealt with this issue.

Earnings and property acquired post petition/post confirmation but pre termination are property of the bankruptcy estate. There may be exceptions for settlements arising from a personal injury lawsuit.