Question about income

[toomuch]

I don't work, just dx with cancer and will be expecting money from a cancer policy. If one is in a Chapter 13, is that considered income? Can they take that from me??

Toomuch

[lrprn]

I don't work, just dx with cancer and will be expecting money from a cancer policy. If one is in a Chapter 13, is that considered income? Can they take that from me??

That's a tough question, TM.

Ch 13 isn't like Ch 7 where the filer's bankruptcy estate is set on the day of filing and what happens after that doesn't matter. In Ch 13, case law states that future income can be taken into consideration after filing as well.

What will matter is how much your cancer policy payout will be and if the payout will be considered income by your trustee - I'm thinking it could be. However, if the money is specifically targeted to be used to pay only for your cancer treatments, that could tilt the table back to even.

You need an experienced bankruptcy lawyer who is familiar with the Ch 13 trustee's customs and history in your district to answer this with any certainty. Sure hope what you find out is in your favor!