insurance settlement after ch 13

[maggie81]

I am 8 months into my Chapter 13 and have a question about a potention personal injury settlement. I was seriously injured in an auto accident 3 months ago and am wondering if I have to report any settlement that I may receive to the trustees? If ch 13 is really a new start aren't I entitled to use this money as long as I am current on my ch 13 obligations?
Thanks for your help

[Flamingo]

You are obligated to report this information to your attorney. Not to do so risks dismissal of your Chapter 13. Call your attorney and give him/her all the details.

[becky20]

We filed ch 13 in july 2008 and in January 2009 had a car accident. The other driver was at fault and my husband suffered knee injuries that resulted in surgery, loss of a significant amount of time at work and physical therapy. We got a settlement and I talked to my attorney about it. He said since the accident happened post-filing, that we did not have to notify the trustee. But my guess is that every trustee is different so you'll need to find out how your trustee handles this type of situation.

[lrprn]

I am 8 months into my Chapter 13 and have a question about a potention personal injury settlement. I was seriously injured in an auto accident 3 months ago and am wondering if I have to report any settlement that I may receive to the trustees? If ch 13 is really a new start aren't I entitled to use this money as long as I am current on my ch 13 obligations?

Since the accident happened after you filed, you couldn't include it in your plan. It's the increase in income after filing that's the crux of the matter here.

I'm not sure how your state treats personal injury settlements, but many states do exempt them from bankruptcy. You need to find out from your lawyer if your state is one of them. You need to notify your lawyer about the settlement no matter what anyway.

Whatever your state's position, there could be wiggle room in the law to structure the settlement so that it's exempt. Your lawyer should be able to explain your state's and your local court's approach to personal settlements received for post-filing accidents during an active Ch 13. He/she should also be able to give you a good idea about what to expect in your specific situation.