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Chosen bankruptcy but afraid of settlement

Date: Wed, 05/09/2007 - 23:46
Submitted by on Wed, 05/09/2007 - 23:46
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I am homeless and own nothing but an old car-1995, and some old clothes, and a few old used dolls, and one diamond ring. I have been unemployed for 5 years. There is no work for me where I live.(I have proof of applying for more than 50 jobs in the last few years.) I was injured in a car wreck 18 months ago and am expecting about $40,000.
I need to go bankrupt but am afraid the possibility of getting the settlement will prevent my bankruptcy.I don't know if I am getting this money or not. I just hope so. I owe $40,000 on four credit cards. I do not want the debt agencies to get the only money I will ever have.

Any advice?


Your best bet I think would be to consult a bankruptcy attorney and ask, usually they will do a free consultation before you commit to anything.

I will share a story, just to share, I do not know if it is true or not...

My coworker told me one of his in-laws filed a bankruptcy several years ago. She had some settlement coming to her that she didn't list on her petition. After her BK was discharged, she came into about $50K. As the story goes, her ex found out about the money, and to get revenge he let the trustee know she had gotten all this money just after she went bankrupt, and that she knew it was coming to her before she filed. She was charged with perjury for hiding her assets, had to give up the money to pay her creditors, and she had to serve some jail time.

Again, this is just a story I heard. Why my co-worker would make up such a story about his family(she was his daughter's husband's sister) I don't know, so I tend to believe it.


Submitted by DebtCruncher on Thu, 05/10/2007 - 09:17

DebtCruncher

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My personal opinion would be that you should be able to keep the settlement but the government thinks differently. The new bankruptcy laws have changed a lot of things and make it difficult for people to file bankruptcy. I agree with DebtCruncher. Consult a bankruptcy attorney and ask them your questions. Most attorney will do a consultation for free, especially for bankruptcy.


Submitted by Sassnlucy on Sat, 05/12/2007 - 19:45

Sassnlucy

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Definately check, I think the rules are different from state to state. But I know that if you incur debt within a certain amount of days prior to filing bk, you can not include that debt in the bk. And I believe that if you obtain this settlement a certain amount of days AFTER filing bk, it is yours. Because your case will have been dealt with by the courts, that is if you are filing a chpt. 7, which I imagine this is what you are doing because you are unemployed and homeless. You need to be employed with an income to qualify for a chpt. 13.


Submitted by WHEREAMI? on Sat, 05/12/2007 - 19:53

WHEREAMI?

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