If my husband has a settlement coming from a lawsuit filed during our Chapter 13, can the trustee take money from it if we filed Chapter 7 right after that?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my husband has a settlement coming from a lawsuit filed during our Chapter 13, can the trustee take money from it if we filed Chapter 7 right after that?
Asked on August 29, 2012 under Bankruptcy Law, Alabama
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The trustee does not take money with respect to any bankruptcy filing. Rather, in a Chapter 13 (reorganization) one's debts are restructured to allow the debtor an opportunity to pay down the creditors in terms he or she can afford. With a Chapter 7, a debtor's debts would be discharged if the plan is approved by the court and creditors essentially receive nothing.
The possible settlement from your husband's lawsuit should have no effect on the bankruptcy that you have written about.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.