Wage Exemptions in a chapter 7

[vhs]

Do you mean that any settlement (or payment) is taxable as regular income or do you mean that they are paying you via a paycheck for a certain number of earned hours? Is a settlement a payment of wages? Do you have an attorney specifically working your retaliation lawsuit?

The question becomes, if it's a settlement, is the payment considered wages or merely proceeds of a lawsuit. How does the settlement classify the payment? (Settlement wording can change how proceeds can be exempted.) Does this make them "W-2" wages or merely taxable wages?

You need an employment attorney to address how any settlement is paid. You need your bankruptcy attorney to explain if a settlement in this type of suit has any exemption (if it's not paid as wages).

You need a qualified employment attorney to answer the base question.

Yes, I have my attorney working on it now.

It's double back pay from a settlement agreement, based on a retaliation from previous employer.

[justbroke]

Do you mean that any settlement (or payment) is taxable as regular income or do you mean that they are paying you via a paycheck for a certain number of earned hours? Is a settlement a payment of wages? Do you have an attorney specifically working your retaliation lawsuit?

The question becomes, if it's a settlement, is the payment considered wages or merely proceeds of a lawsuit. How does the settlement classify the payment? (Settlement wording can change how proceeds can be exempted.) Does this make them "W-2" wages or merely taxable wages?

You need an employment attorney to address how any settlement is paid. You need your bankruptcy attorney to explain if a settlement in this type of suit has any exemption (if it's not paid as wages).

You need a qualified employment attorney to answer the base question.

[vhs]

Hello again,

So, I may get some money from a retaliation lawsuit, that will be a W-2 and will be considered wages. In my state, it looks like I can exempt up to 75% and in some cases, 100% of these wages in my open chapter 7 bankruptcy.

Does anyone have any insight on this? The lawsuit was listed in my filing, and not it looks like the case will be closed due to a possible out of court settlement. I don't think the trustee will fight the agreement made, because there is another party involved, and the cost to go to trial will be significant with no guarantees of winning the lawsuit.

If anyone has any feedback on this, I would appreciate it.

Thanks.