No Distribution and pending lawsuit

[InfoPlease]

I received the trustee's report of no distribution. My question is if i have another lawsuit in which i may win some money, can the trustee come back and take my winnings?

[jribe]

I received the trustee's report of no distribution. My question is if i have another lawsuit in which i may win some money, can the trustee come back and take my winnings?

if you receive a large sum of money within 6 months of discharge the trustee has the right to reopen the case. However, did you know about this lawsuit while you were filing? What type is it? Some types are exempt.

[AngelinaCatHub]

Your stay stops all law suits in time. It's called tolling. Suits that are against you and suits you are Plaintiff in. It is possible that the bk could lift the stay on that suit until they determine the award. I'm not a lawyer but if this is so, how and when did this suit go into practice? 'Hub

[music12]

if you reported the suit as an asset, then the trustee has abandoned it and anything you recover in that lawsuit is yours, regardless of when you get it.

if you did not report it as an asset, then it still belongs to the estate and the trustee may take it.

'hub: i thought suits in which you are plaintiff are not stayed during bk; only suits in which you are defendant are stayed. is there a law/rule i am missing?

[InfoPlease]

I did mention the pending lawsuit during the meeting with the trustee. He said he would contact my lawyer and didn't really seem to concerned with it, the next day he filed the no distribution order. It is a real estate matter, i had to surrender my home (by choice) as part of the bankruptcy, the home had started to sink into the ground and my insurance would not cover it. Apparently it has been a known problem for over 15 years and was not disclosed to me at time of purchase 3 years ago. I don't want to pay out a lot of money for this case just to have it all taken away.

[music12]

if it's not also listed as an asset in your schedules and you want to be on the safe side, you might want to amend your list of assets.