Personal Injury Award prior to filing Chapter 13

[button08]

Last year I received a personal injury settlement that netted 25k after medical bills and legal fees. My husband's business is in jeopary and we need to file Chapter 13 soon in order to protect our personal assets. The business has no assets because my husband and I personally guaranteed the loans etc. I purchased our homestead in FL using part of the settlement. The remainder of the money is sitting in a money market account. How will this settlement affect our Chapter 13?. I do not believe the money is exempt in FL. I do have life long injuries as a result of my accident. Does anyone have any knowledge they would like to share?

[LadyInTheRed]

Sounds like you have non-exempt cash. You can keep it in a Chap 13 as long as your plan provides that your unsecured creditors receive at least an equal amount during the life of your plan. So, if you have $10,000 in your money market account on the date of filing, unsecured creditors will have to get paid at least $10,000. If your disposable income is not enough to do that over your 36-60 month plan, then you may need to spend the money on necessities before filing. You could also consider putting it into exempt assets, like an IRA. Or, if you have a loan on the home, pay down the loan. Before you do any of these things, consult with a couple of BK attorneys to make sure it won't cause any problems in your BK case.