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What does the law mean with the phrase "reasonable and necessary"?

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    What does the law mean with the phrase "reasonable and necessary"?

    So, in my open Chapter 7 case (I was discharged but have a pending lawsuit and my case is therefore, still open), it indicates that future earnings are exempt in my state, for "reasonable and necessary" circumstances for the debtor. I lost nearly 2 years worth of income from my retaliation case vs my employer, which eventually lead to my chapter 7.

    My question: what does the law mean with the phrase "reasonable and necessary"?

    Also, are there state exemptions that would allow a person to keep most or all of their settlement money, in a chapter 7 open case, due to the future loss of income and the insolvent state I am still in?

    Thank you for any feedback on this. I appreciate this website for all the great discussions and learning more about my rights as a debtor.

    #2
    That term, "reasonable and necessary," would need to be defined in the statute or from a court. To which statute are you referencing?
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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      #3


      Hi JB. Thank you for your reply.

      It was in reference to "loss of future earnings" in a pending lawsuit for a open Chapter 7 that was discharged, but still open. It mentions in the law that the "loss of future earnings" has to be reasonable and necessary. I think it was because I am insolvent and had to file for bankruptcy because of the unethical practices of my employer that I did not want to partake in, which created for a hostile work environment.

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        #4
        I wouldn't want to venture a guess without being able to point to something. I would normally look to the statute (or chapter of the law) to find the definition. Then look to caselaw to see how it was defined in prior cases.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment

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