Personal Injury claims & BK

[JJCA]

Does anyone have experience with having had income from a Personal Injury claim and the filing BK? I know everywhere I read it says it is exempt, but still wonder how it is in the 'real world' of trustees looking at your finances :-) In my case it does not include punitive damages or workman's comp. Basically it is for medical bills and lost wages, but it is not broken down in any certain way..just a lump sum less attorneys cut. Any caveats with this? Anyone know how a BK attorney lists this to make it exempt? Since there seems to be some situations where not all of it is exempt, how is that distinguished?

Thanks
JJ

[JJCA]

No replies...perhaps post got buried too fast. Anyone have insight on this?
Thanks

[discombob1]

I'm curious also since I know the TT does want to know if you can sue someone. Not sure how it works if you already have. Good question.

[AngelinaCat]

I know that one of the questions at the 341 is "does anyone owe you any money?" Conceivably, this is where you would say "Yes, I am expecting XXXX amount of dollars as the result of a Personal Injury suit." At which time, the impending income would become property of the BK Estate.

But it sounds like you have already received the award, and in a 'lump sum', and that it has been co-mingled with your other income and has been or is in the process of being spent. Is that correct? If it has been co-mingled, and you have very little paperwork to back your claim that this is the award you received for a personal injury, you may have trouble exempting it. And as you noted that you are in CA a Community Property state, you may have trouble proving that your DH isn't entitled to this money.

You need to schedule three or four free consultations with attorneys and see what their 'take' on it is.

Good luck!

[JJCA]

But it sounds like you have already received the award, and in a 'lump sum', and that it has been co-mingled with your other income and has been or is in the process of being spent. Is that correct?

No, that is not correct. I expect the first settlement in a few weeks. There MAY be a second settlement later from a under-insured motorist policy. Once I receive it, it will go directly into a non-joint account that I have in my name, and will not be co-mingled. I will be very cautious of how the money is spent.

I have been trying to get confirmation and clarification of these codes, but more importantly was hoping for 'first hand' experience from someone or an attorney even
§ 703.140(b)(11)(D)
703.140(b)(11)(D)(E)
704.140(b), (c), (d)

These seem to be what applies. Guess time will tell. Thanks for the replies...

[keepmine]

I don't know where you're hearing it's exempt.
It may be if, your state allows an exemption for personal damage awards.
If you don't have an attorney, you need to speak with a few and see what Ca. law allows.

[AngelinaCat]

It appears that at least part of the award would be exempt, under both versions of exemption tables that Californians can choose from.

http://www.bankruptcyinformation.com/ca_exemp.htm

Now, how your local district and your particular trustee might look at it, and how aggressively he/she may pursue the non-exempt portion, is something that only those that practice law in your area, or have filed bk in your district can answer. So I hope someone with first hand experience will jump in.

Also I haven't found any lists of exemptions, yet, that is newer than 2009....