Exemptions in Chapter 7.

[vhs]

Do exemptions need to be listed in the chapter 7 filing? Or is that something the court understands?

My lawsuit was listed under as an asset in my Chapter 7, but I don't recall any exemption listed under my situation, which is a loss of future earnings settlement, that is going to be the result of the settlement. I wasn't sure if I would get anything when I filed, but under a employer retaliation claim, a winner would or should get a loss of future earnings exemption in most cases, I think.

Hope my question makes sense.

Thanks.

[justbroke]

A debtor must claim exemptions. The Trustee can object to a claim of exemption. If the debtor doesn't exempt something that would be property of the bankruptcy estate, then the debtor made a mistake. In such a case, where the debtor chose or didn't exempt property, the property would be subject to full administration by the Trustee.

The right to "contingent" proceeds from a lawsuit is listed as an asset on Schedule B and then exempted on Schedule C. It's usually listed as $1 and the "contingent" column has a checkmark.

[vhs]

Thanks for the reply. I will have to check the paperwork.

In my situation, the lawsuit I have is a retaliation, where I lost future earnings that I can prove. Not sure if I should wait to list the exemption or wait until the trustee makes decision on the pending asset. I did like the asset in my filing as an asset, per the law.

[justbroke]

One "should" always exempt "property" for which they have a valid statutory or constitutional exemption or that they don't want to protect as much or all of it from the Trustee/Estate. I don't know why anyone would wait to see if the Trustee goes after property listed on Schedule A/B before they exempted it on Schedule C. (Maybe there is a good reason. I just haven't read one yet.)

[vhs]

One "should" always exempt "property" for which they have a valid statutory or constitutional exemption or that they don't want to protect as much or all of it from the Trustee/Estate. I don't know why anyone would wait to see if the Trustee goes after property listed on Schedule A/B before they exempted it on Schedule C. (Maybe there is a good reason. I just haven't read one yet.)

it was from an unknown amount for a lawsuit, because the lawsuit was pending.

[justbroke]

it was from an unknown amount for a lawsuit, because the lawsuit was pending.

Doesn't matter if it's contingent or pending. That's why they have the "contingent" and "unliquidated" check boxes on the form! I think there may also be a column (for a checkmark) for "unknown." For a potential civil lawsuit it's probably contigent and unknown and maybe even un-liquidated as well.

[despritfreya]

Shouldn't you be discussing this with your attorney - assuming you have one? Based upon the information you supplied, it would have been his/her responsibility to properly advise you on allowed exemptions in your state. The failure to claim an exemption is a big problem as JB has pointed out. You better get this fixed and, fixing it is not as simple as amending Schedule C. The amendment will need to be properly noticed to creditors and interested parties.

If you don't have an attny, you need to get one.

Des.

[vhs]

Yes, I have an attorney, and of course, there is a fee to amend it. )).