If you already had the right to sue when you filed, the award in the lawsuit is property of the estate and the trustee has a right to that money. Unless the trustee abandoned his/her claim, if you listed the lawsuit as an asset and the trustee didn't take any steps to enforce his/her right to the property, then it was abandoned. Usually, the trustee will notify the debtor and the attorney handling the lawsuit that the estate has a claim to the proceeds. That secures the trustee's claim. If the discrimination suit arose after you filed, then the trustee has no claim to the funds. For example, if the discrimination suit alleges that you were wrongfully fired on April 1, 2014. If you filed the bankruptcy on or before March 31, 2014, the award isn't property of the estate. Because you weren't fired yet and didn't have any right to suit.
Answered on Aug 05th, 2015 at 6:49 PM