Rehabilition Center discharged in Chapter 7

[Jenny]

I think what Staci is saying is that it doesn't matter when the settlement was reached. What matters is the date of the incident that resulted in the settlement and the date on which the lawsuit was started. If the incident and lawsuit both started before you filed bankruptcy or before the discharge, then the settlement would be part of your pre-bankruptcy estate even though the actual settlement check was issued after the discharge.

[edwards2]

I agree with Jenny and Staci...and I would be really hypersensitive to anything dealing with money pre-BK especially when your so called lawyer has threatened to expose the whole thing to the trustee. I think you need to strongly consider the fallout from all of this. I think I would talk to your BK attorney about it.

[sesame]

Rehab Center Discharged in Chapter 7

The 2nd lawsuit was commenced after the discharge and the settlement after the discharge.

[aa06a47]

The 2nd lawsuit was commenced after the discharge and the settlement after the discharge.

I think the laywer is being a shyster. Of course, that probably goes without saying. Sounds like he is threatening you to take the money under the table he offers, or he is going to give it to someone else.

Check the laws about exemptions for personal injury claims in your state. I believe those are allowed, but is there a limit..I'm not sure????

Your case is complicated. I think the real legal method is one way. Not one of them do this or I'll tell the trustee and you loose everything. You might tell him you are reporting his actions to the bar association and see what he says. You might get the entire check.!!!

[sesame]

Rehab Center Discharged in Chapter 7

Thanks so much for the information. What I have done is followed some of the advice given and called my BK Attorney. He said, that it is exempted.
I have stopped contacting the other lawyer by telephone. Any correspondence with him is going to be mail, and requesting an answer by mail. I just wonder is the check still good. I did not acutally see the check, I only signed the release, which I think came with check. It has been 90 days since I signed that release. I do also plan on making a complaint with the Attorney Grievance Commission here in Michigan. Thanks guys.

[SinkingFast]

Ah,...........

The question here is how long after discharge or close did you receive the settlement??

Windfalls up to 180 days after close of a Ch 7 can be taken by the Trustee. If you receive an inheritance, win the lottery, etc, within the 180 day period after close, the Trustee can sieze all the funds.

Maybe that's what the attny is up to here. While it still doesn't sound all the best, it seems your attny is trying to see that you get something while still giving the Trustee something. The attny may be doing you a CYA favor if you're within the 180 days.

[aa06a47]

Ah,...........

The question here is how long after discharge or close did you receive the settlement??

Windfalls up to 180 days after close of a Ch 7 can be taken by the Trustee. If you receive an inheritance, win the lottery, etc, within the 180 day period after close, the Trustee can sieze all the funds.

Maybe that's what the attny is up to here. While it still doesn't sound all the best, it seems your attny is trying to see that you get something while still giving the Trustee something. The attny may be doing you a CYA favor if you're within the 180 days.

I think this lawyer is doing a CHW (cover his wallet) type of favor. It smells funny when you are given a choice, either take the small amount of money I'm offering, or I'll send it to the trustee. Maybe this is legal, but doesn't sound so to me. I though personal injury lawsuits were exempted. Perhaps I'm wrong.

[sesame]

Rehab Center Discharged in Chapter 7

Yes this personal injury lawyer is not looking out for me at all. My BK lawyer
informed me that this check is exempt because it was from Farm Bureau, and is for a disbility payment (loss wages, medical expenses, attendent, etc)
if you look at the website www.MichiganBankruptcy.com and look at Michigan Exemptions, I am allowed to keep "health benefits." This was a lawsuit to Farm Bureau for "no fault benefits" and the Bankruptcy Code is
600.6023 (1) (f). In addition, when I filed for BK, he presented a motion to the trustee for a exemption for up to $25,999. But, if you remember, I already got $16,000 from the personal injury lawsuit. This later lawsuit was for Insurance Benefits only.

But I am puzzled as to why he is insisting that I pay the Rehab Center, who was discharged in the Bankruptcy. I am really stressed and tripping on that one. It must be a cousin or something, I don't know.

[sesame]

Rehab Center Discharged in Chapter 7

Oh, I forgot to answer your questions about the 180 days.
My bankruptcy was discharged in April 2005. He sued Farm Bureau about 90 days after that, He got the check in December 2005, but didn't tell me until I asked. I signed a waiver from Farm Bureau in December 2005, not knowing he got the check yet, he did not tell me that he had a check when I signed the waiver. Then I thought, wait, where is the check. I called him back and said he had to hold on to the check until he found out the Bankruptcy rules.
That is when he can up with this BS. I don't have a check yet. I'm just wondering how long is this check good for, doesn't a check expire after a certain period of time, anyway, I'll just let my BK attorney handle it.

[sesame]

Rehab Center Discharged in Chapter 7

Guess what, I called the Trustee's office myself. (My BK attorney also called them) The trustee's office called me back and said that they don't want any money from my lawsuit. I called and left a message with the Lawsuit attorney jerk. I'm still waiting to hear from him. Now what??!!

[aa06a47]

Good luck with this sesame, you might call your attorney and tell him your filing a complaint with the bar in your state asking for an investigation into this matter. I would state that you want to do what is correct with the money, but he is taking way too long. I would also state you feel he is up to fraud. Understand, he can hide behind the I need to find out about bk rules, and probably just get told to hand over the money, but he probably won't want to be investigated.

[sesame]

Rehab Center Discharged in Chapter 7

Thanks for all your help. I am glad I found this Forum, it has really helped me. I am so frustrated. I keep myself busy, if not for that I would have lost my mind by now. The Lawsuit lawyer is about close to 70 years old, so he is an old Shyster (or however you spell it) So far, I have gotten nothing.

[aa06a47]

Pick up the phone and call the local bar association, they should get thing rolling.