Chapter 7 Asset case seems to never be correct unless...

[chargers777]

The liabilities exceed the assets.

I am in a situation where I might get a settlement from a lawsuit and it might be more than the chapter 7 saved me (about 100K). I am kicking myself in the head for this, as I wish that I would have waited to file until after the asset came to fruition.

Don't make the mistake I made. Using my Chapter 7 "bullet" when I did was not smart, and is going to cost me. Better move would have been to let the asset settle, and then see where I was at with everything. The money from the asset could have been used as leverage to negotiate with my creditors. And, if they were not reasonable, then I could have filed later on, if needed.

My point is to be careful when you are going to file, as you can only do so every 8 years in most states.

So, when will likely happen in my situation is that my creditors are going to get paid in full, and I will have a chapter 7 on my credit report for 10 years.

I am really upset about this decision I made, and hope others will consider their alternatives in these situations. In my case, I was just under a lot of stress, and made the decision because I just could not keep up with all the bills piling up. Regardless, I would say, I should have just let the bills pile to the heavens, and then just file with the assets cleared.

Did I miss anything here? Any feedback on this would be helpful. I just want to figure out what I could have done differently, or if my thinking was correct when I made the decision to file.

Thank you.

[despritfreya]

Unfortunately, as you have discovered, you lose control of all non-exempt assets if you file a Chapter 7. I am sure your attorney discussed this with you and suggested filing a Chapter 13 instead (if a bk was necessary at that time). You would have kept control over the settlement claim and, in most jurisdictions, once you realized how much was coming from it, you could have decided either to turn it over or seek a voluntary dismissal of the case. You would have needed to check if your district states that one filing a Chapter 13 has the absolute right to dismiss the case at any time.

Has a claims bar date been issued?
If that date has passed, how many creditors actually filed timely claims? What is the total amount of the filed unsecured claims?
Is it possible that you will get some money back after all filed claims and administrative fees are paid?

As to the 8 year rule, such is not a "state" issue. Bankruptcy is Federal law and pursuant to 11 USC 727 (a)(8)one is simply not entitled to a Chapter 7 discharge after receiving a Chapter 7 discharge in a case that was filed within the prior 8 years.

Des.

[chargers777]

Thanks for your feedback.

I guess I want my cake and eat it too.

I was in a 13, but lost my job and had reduced income. That led me to the 7. Also, at the time, the settlement was up in the air and I wasn't sure I would get anything. I still have 10k wildcard that I can keep, so all is not bad.