future insurance settlement - lawsuit

[paradiddle]

I am in the middle of a lawsuit that has not been settled. I am not sure if it will get settled or what the amount will be if settled.

I was out of work for a year for medical (surgery) related to lawsuit. Previously purchased a business that failed and drew no income for one year and sold at a $25k loss.

In the mean time I have compiled about $60k in CC debt - have a $210k in first and $62K in secong mtg. I have played the CC game and am not in default on anything yet. My plan was to repay debt (eliminate CC debt and second mtg) if we settled on amount. But what if ??? it don't happen or don't happen in a timely manner.

If I did a chap 13 would that future settlement have to be declared or factored in ?

Wife works FT and back PT

[paradiddle]

Maybe it can be done

Found this statute in Fla Law - I may be able to exempt any insurance benefit.

222.18 Exempting disability income benefits from legal processes.--Disability income benefits under any policy or contract of life, health, accident, or other insurance of whatever form, shall not in any case be liable to attachment, garnishment, or legal process in the state, in favor of any creditor or creditors of the recipient of such disability income benefits, unless such policy or contract of insurance was effected for the benefit of such creditor or creditors.

[StartingOver08]

I am not so sure you can keep any of the proceeds from the lawsuit if you file BK. Check out these Fl Exemptions:

http://www.filing-bankruptcy-form.com/forms/exemptions/Florida.pdf

Also, right in the petition there is a spot to put in your lawsuits and my attorney said the Trustees like to go after any of the proceeds that is why they monitor the lawsuit.

You would need to check with a BK attorney for sure...but it sounds like the proceeds (if any) would go to the trustee in your BK.