advice

[hopelesslyindeb]

Hi i've been thinking of going bankrupt for a while now but haven't gotten a lawyer yet.
But now I just got in a car accident and if I were to get some settelment money from it would that affect the bankruptcy in anyway.

[free2breathe]

That money you might receive would generally become property of the bankruptcy estate, because the accident happened prior to filing date. An attorney would be able to answer that question for you. You should be able to get a few free consultations with different attorneys. Those are great questions to ask when you talk to them

[Peeps]

If you receive some sort of settlement or award, it could be considered income, which could ultimately change how you file a BK (Ch 7 vs Ch 13). You might ultimately decide to hold off the BK so you can "plan." You should definitely talk with a lawyer about this because there are some areas where you'll need to tread lightly. Whether or not a settlement can be exempted, either partially or in whole, is often state-specific... another good thing to chat with lawyer about. Good luck and sorry about your accident... hope you're ok.

[tcreegan]

Hi hopelesslyindeb,

In Mass you can use state exemptions or federal exemptions. I didn't see anything in the state exemptions but you might be able to exempt it w/ this federal exemption:

522(d)(11)(D) - Personal injury recovery up to $20,200 except for pain and suffering or for pecuniary loss.

If you don't exempt it, the trustee gets it and they distribute it to your creditors.

If you get it b4 your BK, you can spend it on legit expenses so it is gone by the time you file BK

Hope this helps,

Tom in Colo