Bankruptcy Wizard
They read it but you never exempted it?
Doesn't matter if your lawsuit attorney understands the settlement better than anyone else. It matters how the language applies in a bankruptcy court! For example, personal injury (PI) proceeds that go to the care and future care of the debtor are generally exempt. However, if the settlement just says this is a settlement of $100,000 without specifying how it is split into different component parts. Here in Florida, the compensation received for emotional pain and suffering is not exempt. If the settlement just says $100K for the injury... oops!
This is why many people preparing to file bankruptcy will make sure their bankruptcy attorney, divorce attorney, and/or PI attorney are talking before any divorce or PI settlement is done. The wording matters. The words in your settlement are perfect for a general lawsuit. They may not be "perfect" in a bankruptcy context because the wording is unclear as to exactly which $1 goes to what part of the claim.
I'm just trying to let you see how it could be analyzed.
I'm assuming you're an asset case which means the Trustee wants to administer the claim as an asset. Has the Trustee already contacted your lawsuit attorney? Maybe the Trustee will just abandon it. Who knows.
Doesn't matter if your lawsuit attorney understands the settlement better than anyone else. It matters how the language applies in a bankruptcy court! For example, personal injury (PI) proceeds that go to the care and future care of the debtor are generally exempt. However, if the settlement just says this is a settlement of $100,000 without specifying how it is split into different component parts. Here in Florida, the compensation received for emotional pain and suffering is not exempt. If the settlement just says $100K for the injury... oops!
This is why many people preparing to file bankruptcy will make sure their bankruptcy attorney, divorce attorney, and/or PI attorney are talking before any divorce or PI settlement is done. The wording matters. The words in your settlement are perfect for a general lawsuit. They may not be "perfect" in a bankruptcy context because the wording is unclear as to exactly which $1 goes to what part of the claim.
I'm just trying to let you see how it could be analyzed.
I'm assuming you're an asset case which means the Trustee wants to administer the claim as an asset. Has the Trustee already contacted your lawsuit attorney? Maybe the Trustee will just abandon it. Who knows.
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