Q: I receive money from an auto injury accident each month for life for pain and suffering and disabilities. I need
To file chapter 7 because of a divorce and ex-wife has already filed in another state, all her bills came to me. Can the state take my annuity settlement in this state even for bodily injury? I know in other states they can not.
A: If the accident occurred after you filed, it is not part of the case. If the accident occurred prior to the filing of your case it should have been disclosed in your Petition. If it was and the trustee abandoned it, then it is yours. However, you have a duty to report it to the Trustee, if the funds are received within six (6) months of your discharge. Depending on the reason Annuities can be exempt; however, that exemption generally applies to IRAs. Compensation received due to lost wages would be exempt, but usually not that received for injury/suffering.
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