Exemption for personal injury court award

[bizy]

Has anyone successfully claimed the exemption for a personal injury award in a court suit? Wondering how sticky they get concerning where the money is today. If you don't have a clear trail as to where the award money went, do you get to claim the exemption anyway, assuming you still have an amount of cash equal to the award?

[ValleYum]

From the NC Exemptions above:

Personal Property

1C-1601 - Motor vehicle up to $3,500; health aids; clothing, household goods, furnishings, appliances, books, animals, musical instruments and crops up to $5,000 total, plus additional $1,000 per dependent up to $4,000 total (all property must have been purchased at least 90 days before filing); personal injury and wrongful death recoveries for a person you depended upon; college savings accounts that were established under 26 U.S.C. § 529 up to $25,000. There are some contributions within the prior year that are excluded.

How I read that is that your court award would be exempted under personal property. It would not hurt to ask an attorney this question whilst you are interviewing them.

[randriea]

Personal injury lawyers would be able to help you win the case. However you should do a thorough study on the previous record of your personal injury lawyer. Read some personal injury lawyers legal information.

[Peeps]

If you don't have a clear trail as to where the award money went, do you get to claim the exemption anyway, assuming you still have an amount of cash equal to the award?

If the award has been comingled with other funds, you might some trouble keeping it safe... even if the amount on-hand is equal to the original award. Your attorney might advise you to "spend it down" before getting too serious about a bankruptcy. Best of luck.