How do I list lump sum income in CH 7?

[rhp]

I had an insurance claim that paid out a few months back. I've been living off it and now it's gone. Do I just list the total amount in sched I?

Thanks!

[MSbklawyer]

Insurance claim for what? Insurance payments are normally not 'income' especially if you paid the premiums. It's just a replacement in the form of money for an asset that you formerly had. For example: You total your $10,000 car and your insurance company gives you a check for $10,000. That's not income.

That's not to say that you wouldn't disclose such a transaction in your bankruptcy schedules, but you wouldn't list it as an item of income.

[rhp]

Insurance claim for what? Insurance payments are normally not 'income' especially if you paid the premiums. It's just a replacement in the form of money for an asset that you formerly had. For example: You total your $10,000 car and your insurance company gives you a check for $10,000. That's not income.

That's not to say that you wouldn't disclose such a transaction in your bankruptcy schedules, but you wouldn't list it as an item of income.

My car was totaled and I got a check for $10k. I bought a new car for only $5k. I also got a check a settlement check for $3k, for the pain and discomfort from my injuries.

I'm wondering where I list this $8k that I've spent down?

[MSbklawyer]

Insurance settlements from the property damage and the pain and suffering are not income. If you got any money for lost wages, that might be classified as income. I would disclose it all on the SOFA (see items 4 and 8), and you would have to disclose any of the cash you have left over as an asset on schedule A.

[rhp]

Makes sense. Thank you much!