Need filing advice - new to this

[JenRob]

Hi there,

I am wanting to file for chapter 7 bankruptcy with my husband. However, he just received a $20000 settlement on a worker's comp case. Our debt is way over that so I want to still file. But how long do I have to wait to file so the creditor's can't claim that money? We are planning on paying a couple debts off in the meantime. Any advice would be very much appreciated.

Thank you!
Jen

[tyson24]

If you spend it on debts like credit cards, you have to wait 90 days. I would think as long as you spend that money on legitimate stuff and keep receipts, you will be fine.

They will want to know where that money went. I would say wait until April at the least. What city in MN would you be filing in? Duluth, St. Paul or MPLS?

[JenRob]

Thanks.. I will be filing in Fergus Falls, mn

[tyson24]

Okay. You have to figure out if you are over or under the median.

The max income for 2 people is $62,162

Max for 3 is $74,806

Max for 4 is $86,329.

I am not sure how that settlement adds into your income. I beleive you have to add that to your gross income before taxes and then figure out if you are low enough to qualify for a Chapter 7 BK.

Hope this helps!

[tcreegan]

Hi JenRob,

If you know you are going to file BK, do NOT pay any debts.

Check w/ a local atty about the MN 176.175 - Workers' compensation exemption.

You are going to want to shop around for attorneys anyway, get all your numbers together and get a few consultations going. Ask about the work comp being exempt. I think you can exempt it, shame to waste any on debts that are going to be discharged in the BK

Tom in Colo

[antrob]

I got to exempt my entire $19,000 workers comp settlement over here in California.