Personal Injury Claim Questions

[ForTheBest]

Have any of you had any experience with a personal injury claim that's become ready to settle after you filed Ch7 but before you were discharged?

I'm wondering if Trustees go after these very often... for example, maybe deciding to go after the insurance company to try to get a higher-than-exemptable amount so they can use the difference to pay creditors? Or for other reasons that haven't even occured to me?

Also, since "pain and suffering" isn't exemptable, are these settlements usually written up without a figure for pain and suffering?

Any info/personal experiences/ horror stories would be appreciated.

My car was rearended at a stoplight a year ago. I filed bk almost 2 months ago and just recently learned that a settlement is about ready to be made. I'm using the Federal exemptions and the settlement amount would fall well within the allowable exemption amount.

[AngelinaCatHub]

Personal injury is usually (in theory) pay back for your doctors bills, and possibly follow ups. As it is an injury case, and not a Civil suit, per se, you are not getting a reward of payment but a reimbursement of expenses and costs of rental car, etc. Insurance proceeds are not attachable, but this puts a muss in the fuss. Perhaps one of our two great on board lawyers can chime in. 'Hub

[jribe]

check your state statues specifically - but personal injury settlements are generally exempt from collection.


In CA they are.

Have any of you had any experience with a personal injury claim that's become ready to settle after you filed Ch7 but before you were discharged?

I'm wondering if Trustees go after these very often... for example, maybe deciding to go after the insurance company to try to get a higher-than-exemptable amount so they can use the difference to pay creditors? Or for other reasons that haven't even occured to me?

Also, since "pain and suffering" isn't exemptable, are these settlements usually written up without a figure for pain and suffering?

Any info/personal experiences/ horror stories would be appreciated.

My car was rearended at a stoplight a year ago. I filed bk almost 2 months ago and just recently learned that a settlement is about ready to be made. I'm using the Federal exemptions and the settlement amount would fall well within the allowable exemption amount.

[eddiep]

I am in the same situation. Hubby was in motorcycle accident two years ago, and we filed chapter 7 in August. We were able to exempt 20200 under the federal exemptions, if we get more than what we can exempt we have to notify the trustee. The trustee questioned us about this at the 341 and instructed us to notify our attorney if we get a bigger settlement than expected.

[music12]

i think technically at this point you are not allowed to make the settlement - the trustee has that authority over your estate, and the personal injury claim is part of your estate. but, if it's about to settle for a specific amount that's less than the exemption amount, the trustee most likely will leave it alone. they'll assume they won't be able to get more than that, and let it go.

[mom2three09]

We're in a similiar situation, except our accident occured AFTER our 341. We have not settled yet, but our attorney said not to worry about the trustee wanting any of it. Technically we should already be discharged (as of the 14th) but our attorney had to take care of something for us so he asked for a 30 day extension.

Since your accident happened before filing you will definitely need to talk to your attorney about your options.

Good luck

[ForTheBest]

Thank you all so much for your replies.

eddiep... I hope your husband is doing okay. Would you mind posting the kinds of questions your trustee asked about the claim at your 341? And did he/she say you'll be allowed to collect the settlement before discharge if it's available? Lastly, is there a pain and suffering element to your claim? If so, do you know how that's going to be handled?

mom2three09... I remember reading about your accident when you first posted about it. Just about a week after your 341, wasn't it? Geesh. Hope you and dh are feeling okay now - and downing a free x-large double cheese as you read this! lol

music12... Thanks for your encouraging opinion on this. My fingers are crossed that my trustee will leave it alone.

My first bk attorney didn't list the claim on my schedules. Kept telling me it wasn't necessary since "we don't know yet if you'll actually get anything." It wasn't until a few hours after my 341 that I learned the claim was about ready to settle and, regardless, definitely should have been listed and exempted. Yikes.

For that and several other reasons, I've since changed lawyers. The schedules have been properly amended and I have to attend another 341 in early November.

Since this will be my first face-to-face with the trustee since he's become aware of the claim, I'm nervous about what might be asked and how it might be handled. I've talked to my lawyer about that, of course, but also wanted this forum's take on it. So thanks again for your help.