Personal injury Settlement 7 years after Bankruptcy

[farnorth]

Ill get right to the point here, i was sexually abused when i was a child and just received a settlement of a moderate amount, now they are reopening my bankruptcy to pay creditors. Can they do this?
Is my settlement exempt?
Damn i am pissed off, can this be?

[farnorth]

Anyone with any ideas or answers??

[newbie2]

How was this lawsuit addressed during your bankruptcy filing? Did you / your attorney attempt to exempt any possible settlement money from the bankruptcy estate in your filing?

[despritfreya]

There are 3 issues here and, due to the nature of the claim, I will assume that you did not disclose this potential "asset" on Schedule B some 7 years ago.

1. Was the asset listed?
2. If listed is it exempt?
3. If listed and not exempt was it described in enough detail that the Trustee could make a valid business decision to abandon the asset.

1 and 3: If the asset was properly listed then once the case was closed the Trustee abandoned it. Once abandoned, always abandoned and the Trustee should not be allowed to exercise any control over the asset some 7 years later.

If the asset was not disclosed on Schedule B or was disclosed but not in enough detail to put the Trustee on notice of a potential recovery, the asset was never abandoned and the Trustee could seek to exercise control over it.

I am guessing that the asset was not listed therefore the Trustee’s action in reopening the case is valid. But, read on.

2: If properly listed and Alaska allows for State exemptions AND this exemption was in existence 7 years ago and you claimed it, Alaska Stat. 09.38.030(e)(3) 100% for personal injury/wrongful death recovery should cover it, assuming the injury is classified as a type of “personal injury”. If you utilized Federal exemptions there is one that covers personal injury claims as well as a wildcard but I do not know what those limits were back in 2004.

If the asset was not listed, and, therefore, not abandoned, and the Trustee recovers $$ at this time, there is a split in authority as to whether or not you can claim an exemption. I can’t find the Code section at the moment (to early in the a.m.) but there is a provision that an asset recovered by the Trustee is recovered “free” of any exemption that a debtor can claim.

Due to the nature of your claim it would be understandable if it was not listed. You now need to find a good attorney who can negotiate a settlement with the Trustee so that you can get some (but most likely not all) of the recovery.

Des.

[ValleYum]

newbie2 is right. I think it will depend on how it was addressed when you filed.

Looking at Alaska's BK Exemptions, regarding personal injury recovery they state:

Personal injury recoveries, to extent wages exempt

Wage exemptions for Alaska state:

Weekly net earnings to $350; for sole wage earner in a household, $550; if you don't receive weekly, monthly or semi-monthly pay, can claim $1400 in cash or liquid assets paid in any month; for sole wage earner in household, $2,200

Those wage exemption explanations read like IKEA assembly instructions to me!

This sounds like a question you may have to ask your BK attorney. I hope you get something out of your settlement - from what I read, it sounds as if you deserve to get it all. Take care and good luck.

EDITED TO ADD: Des' advice is the one I would take.

[AngelinaCatHub]

So there are no S.O.L. in BK? So how can we consider to be free for our "new start" if anything comes along that could be honestly forgotten? I understand abusing the system, but 7 years seems to be abuse of the debtor. Does not seem fair to me. 'Hub

[despritfreya]

So there are no S.O.L. in BK? So how can we consider to be free for our "new start" if anything comes along that could be honestly forgotten? I understand abusing the system, but 7 years seems to be abuse of the debtor. Does not seem fair to me. 'Hub

Unfortunately, Hub, fairness plays no role in this. If the asset was never abandoned and the Trustee "catches on", then the Trustee takes it unless some exemption is available and allowed. Is this fair? Depends upon the situation. But, regardless of fairness, this is why OP needs to hire an attorney. The Trustee knows fighting over the asset will cost money for both parties. The Trustee is going to settle this.

As to how this happened in OP's case. . . And, I am assuming the asset was not listed. I have no doubt that this was a last ditch effort on the part of the defendant to "stick it to" OP. The defendant probably notified the Trustee about the settlement. Could be wrong and maybe OP will elaborate but I understand if he/she does not want to.

Des.

[farnorth]

I never Knew

I never knew 7 years ago about this incident, or should i say i never knew i could make a monetary claim therefore it is considered i did not know at the time that a claim could be made for settlement in the abuse case.

So at the time of my Bankruptcy i never listed it as an asset because i never knew i had a financial claim in the future, does this make better sense?

[despritfreya]

So at the time of my Bankruptcy i never listed it as an asset because i never knew i had a financial claim in the future, does this make better sense?

Yes, this makes sense but, unfortunately it does not change what is happening. Due to the nature of your claim it is totally understandable that it was not listed. Again, the Trustee is most likely going to settle with you as it relates to you keeping some of the settlement. But you really need the assistance of a qualified attorney to help you through the process.

Des.