Ismy Chapter 13 trustee entitled to my injury settlement even though I received the settlement 2 years after I filed?

UPDATED: Aug 22, 2010

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Aug 22, 2010Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Ismy Chapter 13 trustee entitled to my injury settlement even though I received the settlement 2 years after I filed?

I filed for Chapter 13 bankruptcy in 2008. Last week, I was told that I would receive $8000 because of an accident that I had at my gym. My attorney informed the Chapter 13 trustee of this settlement. Does she have any right to it?

Asked on August 22, 2010 under Bankruptcy Law, Massachusetts


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Different states treat the receipt of personal injury settlements differently and the timing of the settlement and the filing will have an effect on the answer.  Although theoretically you have an obligation to report any money that you may have and may receive to the trustee for payment out to creditors, certain states exempt personal injury settlement money from bankruptcy.  I believe that Massachusetts may be one that follows that rule.  But did you choose th federal exemptions over the state exemptions?  Check and see.  And check with your attorney as well for the PI settlement to see if there is any way that you can structure the money out, although it is small for that.  Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption