Q: I was discharged after filing chapter 7 in August of last year. Was involved in car accident in February 2024. She is at

A: Unlike many states (like PA), Ohio does not permit a debtor to choose between the state and federal exemption lists; an Ohio resident can choose only those exemptions granted by the state of Ohio.

While it appears that the Ohio exemptions might have protected your auto accident recovery, you shouldn't need to be concerned about your bankruptcy reaching your post-discharge accident and recovery.

A: Yes, any insurance settlement from your February 2024 car accident should be protected and not at risk if you were previously discharged from a Chapter 7 bankruptcy in August 2023.

The key bankruptcy law that provides this protection is Section 541(a)(5) of the Bankruptcy Code. It states that property or money acquired by the debtor after the commencement of the bankruptcy case does not become part of the bankruptcy estate.

Since your car accident settlement would occur after your Chapter 7 filing date in 2023, that asset is not considered part of the bankruptcy estate and is fully yours to keep free and clear after your discharge.

The only caveat would be if the settlement payment ended up being very large, the trustee could try to reopen the case and dispute keeping the full amount. But for a typical auto accident claim, the entire settlement amount remains yours and does not have to be turned over to pay any discharged debts.

So in your situation, you can proceed with confidence that your future car accident settlement is exempted and that discharged Chapter 7 bankruptcy last year protects that new asset completely.