Personal injury settlement during BK

[lovebirds]

What happens to my personal injury insurance settlement if I declare Chapter 7 before it can be "awarded"?

I don't think there will be any money left over after medical liens and lawyer fees. The trustee can have everything left over but will they take the money before the doctors get it?

The hospitals here will not accept you for treatment if you owe any money. My husband has already been "banned" from one hospital and I don't want to be "banned" from another.

I'm in Louisiana.

[keepmine]

It'll become property of the bk estate and will be used to pay unsecured creditors.
Your bk will be discharged but, left open until the award is received by the trustee. It's disposition will be beyond your contyrol.

[StartingOver08]

Better to get the award first then file if you can wait it out.

[lovebirds]

Better to get the award first then file if you can wait it out.

I can't wait it out. I think Nissan is going to be suing me for deficiency within the next few months. If I get anything garnished , I will default on my mortgage.

[lovebirds]

It'll become property of the bk estate and will be used to pay unsecured creditors.
Your bk will be discharged but, left open until the award is received by the trustee. It's disposition will be beyond your contyrol.

Will the fact that the doctors have liens give them priority over American Express?

[jribe]

Will the fact that the doctors have liens give them priority over American Express?

the "lien" of the settlement by the doctor (if that's what you're reffering to as the lien) won't matter. That's just what they have you sign so they get paid.

You'll have to exempt the whole injury settlement amount; most states allow some type of exemption for setttlements. But it's still the gross amount, not net what you recieve.