QUESTION
What types of assets are protected from seizure in bankruptcy?
Asked on Oct 12th, 2014 on Bankruptcy - Michigan
More details to this question:
I've been waiting on an insurance settlement for an accident that occurred in recent years. However, while waiting, my family and I have experienced multiple financial setbacks. The long and short of all of this is that bankruptcy will be inevitable as any settlement received will be far short of what would be needed to become solvent again. I'm trying to wait to file bankruptcy until after the case is settled and any funds disbursed. However, I need to know what types of assets are protected from seizure in bankruptcy proceedings so that I can invest my pittance, no matter how small, in an asset class protected from seizure by bankruptcy.
7 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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The settlement money would be at risk in a bankruptcy; it might be exempted, in part, depending on the chapter 7 exemption scheme you're under and your other assets.
Answered on Oct 15th, 2014 at 5:36 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The exempt assets vary from state to state. In Ohio, $23,000 plus the award for pain and suffering plus the award for actual losses are exempt.
Answered on Oct 14th, 2014 at 5:04 PM
You need to be very careful how you settle your case. The money must be isolated. Open a new checking or savings account, and ONLY put your PI settlement proceeds in this account. You can Google "Colorado Exempt Property" (or whatever state you are in) and see a list of exempt property. If I were you, I would pay a very experienced Bankruptcy Lawyer for one hour of his or her time for guidance. Do not be penny wise and pound foolish! Pay for the consultation - do not cut corners and try and find a free BK consultation. I have been doing this for over thirty years - you will thank me later! Good luck.
Answered on Oct 14th, 2014 at 5:02 PM
You will want to review the exemption laws available to you and these laws vary widely from state to state. In addition, if you moved into your current state during the past two years, the laws of the state where you used to live, not the laws where you currently live, apply. In Nevada, you can protect up to $16,150 for a personal injury award and $1,000 for a wildcard. If the insurance claim is made under workers compensation, the entire award is protected under Nevada laws.
Answered on Oct 14th, 2014 at 5:01 PM
This kind of bankruptcy planning is legit, but it requires special knowledge that only an attorney can give you, and they're not likely to give it to you for free.
Answered on Oct 14th, 2014 at 4:59 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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The advice you are asking for puts an attorney at great risk as nothing that can be advised is fool proof. You need a one on one in person consultation.
Answered on Oct 14th, 2014 at 4:50 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You should seek council of the bankruptcy attorney now and undertake to make sure your assets are as protected as possible.
Answered on Oct 14th, 2014 at 4:46 PM