Can A Trustee Do This?

[racnforfun2]

Our attorney told us a previously filed medical lawsuit filed with a lawyer on asbestosis claim would be exempt since it will be small and few monies received. Well today we got a letter from the Trustee wanting any money received from this two year old claim. We received $650 so far and have to give it to her. Is my attorney right this is exempt since it is pre-existing and could eventually turn to mestheloma in years to come. If the Trustee is right how long can she keep this file open.

[JRScott]

I'm not sure about this, have you contacted your lawyer?

Generally they do have the right to claim monies owed to you to distribute to the creditors, however with the 650 already paid makes me wonder. Over what time frame was the 650 paid? Did you include it in income calculations?

I'd notify your lawyer right away and if necessary take the letter to your lawyer and see what he says. He might be able to help you

[cupcake]

Our attorney told us a previously filed medical lawsuit filed with a lawyer on asbestosis claim would be exempt since it will be small and few monies received. Well today we got a letter from the Trustee wanting any money received from this two year old claim. We received $650 so far and have to give it to her. Is my attorney right this is exempt since it is pre-existing and could eventually turn to mestheloma in years to come. If the Trustee is right how long can she keep this file open.

What state do you live in? This situation sort of just came up for me, as well, and because I live in Michigan, I can use the federal exemptions. There is a federal exemption for personal injury recoveries up to $20,200. My attorney thinks that my settlement money can be exempted under that. My money hasn't been paid yet and I will probably not receive it until after January - not sure if that makes a difference.

[laurannm]

Was your case discharged but not officially closed?

[justbroke]

This definitely depends on the State exemptions for personal injury lawsuits. I was just looking at California (System 2) which has $20K for personal injury lawsuits exempted.