Chapter 7 and got letter offer for sttlement for my kids acar accident

[debt]

I live in California. My kids was in an accident last year with my parents vehicle. The accident was not their fault. My parents hired a lawyer to sue the person that hit them. I wasnt really thinking of the settlement. Today I got a letter from my parents attorney that my kids are getting a settlement for $7150.00. My mom does not want to take the settlement she wanted more for my kids because they were traumatize. For me I'm ok with it. As long as my kids are fine. Now my question is I am filing for chapter 7 next week because I am too much in debt. Can the trustee take that money if my mom settles with them. They might write the check to me because they are minor. Even though I was not in that accident. I just dont want the trsutee taking my kids settlement I can put that in the bank for their college. Pls advise Thanks

[dingdong]

On your petition you are asked if there are any lawsuits/settlements pending.

Have you used all of your exemptions? IF you have some exemptions left, perhaps you can exempt some or all of it.

I would talk with your attorney, he/she would be the best source of info for this situation.

If the money is paid to your parents, perhaps they can put it in a trust with a spendthrift clause until they are 18 and going to school.

[OhioFiler]

Are the children named as plaintiffs in the action? It sounds like the insurance company is offering your parents a settlement.

Talk with your BK attorney.