Just recently D/C'ed and Closed, but I have to sue someone now for a large sum of $$

[tyson24]

In my update thread, I mentioned my son was bitten by a dog 11 days ago. He has 100 stitches in his face and we had to get an attorney to pay these medical bills. The attorney took my case on contingency, and says my son may see $100,000 out of this.

Of course we know that MAY NOT be the case, but he will see something.

Whatever he gets will be in a blocked account for him and not allowed to be touched by him until he is 18. He is 6 now.

I need to report this to my trustee correct? Will this be an issue? We are closed as of the 28th of January.

I have a call in to the attorney but just wondering if what I am thinking is right.

[sealpup]

I don't have an answer to you question, but wanted to say I am so sorry!! I hope your son is healing and everything turns out okay. How scary for all of you! One of our dogs bit my daughter on the cheek a year and half ago. She ended up in the hospital w/a bad infection. I'm sure they have your son on antibiotics. Good luck with all of this.

[debee]

I don't think you have to worry about it. It's not one of the items listed as becoming part of the bankruptcy estate in the 180 days post-filing. 11 USC 541 lists three types of assets that would become part of the estate, Stuff you receive via:

(A) by bequest, devise, or inheritance;
(B) as a result of a property settlement agreement with the debtor’s spouse, or of an interlocutory or final divorce decree; or
(C) as a beneficiary of a life insurance policy or of a death benefit plan.

Really sorry that this happened to your son.

EDIT: The right to file a lawsuit didn't come into existence until your case closed (if I have the dates right) and what's more, the right to file a lawsuit isn't yours, it's your son's and you'll be filing on his behalf. His settlement will be held in trust and used for his plastic surgeries, etc.

[backtoschool]

Debee is correct. But the dates to keep in mind are if/when the event that you are suing over occurred before you filed bk. If that is the case, then the trustee can reopen your case and add whatever you win in the case to your bk estate. The timing is the key here.

[debee]

Oh, I'm sorry if my post was unclear. I usually try to improve clarity with my edits, not make them worse!

I didn't mean to suggest that the bankruptcy estate (and its inherent property which includes the right to file a lawsuit) was established at any time other than filing with the exception of the items I specifically mentioned (inheritance, divorce proceeds, life insurance).

I was thinking of your question as to whether or not you had any obligation to report the settlement and since it's not one of the three kinds of property mentioned in my earlier post, you're not obliged to report it.

Then I was thinking about your question as to whether this would be an issue for your bk. We know there have been successful "totality of circumstances" dismissals based on property rec'd post-filing even though the property was not of the kind listed in 11 USC 541(a)(5). I wanted to reassure you that you didn't need to worry about this because your case is already closed and what's more, the newly acquired right to sue isn't yours, it's your son's. All courts/states have legislation that limits access to a child's settlement. It's likely held in trust and the court will decide when and how any funds can be accessed. So the money is out of the trustee's reach.

Anyway, I'm sorry if I caused you any confusion and I'm sorry for your little boy.

[AbbeyA]

I'm sorry you son was attacked by a dog, I hope that heals quickly with minimal scarring. Hugs to your little guy and his parents too!

[iv65536]

The dog bite is post-petition. You may want to let your BK attorney know in case the trustee decides to go after it. What's more, it's your son's claim, and it wasn't your son who filed BK.

[etechjc]

Sorry to hear about your son.
100K is a lot. By the time you sue and find out the outcome you will be long past your 90 day window, Your probably safe since you didn't have the ability to sue until after DC. And that doesn't even include the time in which it will take to collect assuming the person your suing has the money to collect from, And even then, That takes in assumption you don't force that person into bankruptcy.

On a side note I have been curious to know, Say OP wins the law suit for 100K and the person that was sued files for bankruptcy, Does the lawyer get paid?

[debee]

Dog bites usually come under homeowner's insurance. So the dog's owner aren't likely to be personally liable. Chances are it will be between the attorney and the insurance company and might not even get to court. When children are involved and when the injuries are extensive and on highly visible parts of the body, the awards are big.

[tyson24]

Thanks for all of your feedback

We were discharged on the 10th of January but this happened January 27th, to the person that was asking this.

I called my attorney and he told me not to worry about it at all. That it was not one of the things the court would want to know about.

The attorney i have for this case is not my bk attorney, but he definitely says that my son will have enough money to start his life comfortably.

We are filing a claim against their homeowner's policy (Debee ) and I guess it is a big liability max from what my attorney says. That however, does not mean we will get all of it in any way, after everything he has been through he definitely deserves it.

It is taking a toll on our close family which is horrible.

On a good note, we had the follow-up with the plastic surgeon today and all looks good, he is healing wonderfully (not for my taste but oh well) and we have a lot to be thankful for.

[tcreegan]

Hi tyson,

Minn exempts "accident proceeds" anyway, might be why your attorney isn't concerned...

My daughter got a dog bite that missed her eye by a quarter inch, she is 23 now, no trace of the bite.

Amazing what doesn't matter when your kids get hurt....

Glad your son is healing nicely !!

Tom in Colo