Lebanon, NH asked in Bankruptcy, Collections and Consumer Law for Vermont

Q: I am considering filing bankruptcy but have a possible settlement coming in a court case that has been filed in fedl ct

PLZ presume I know I can see an atty, I know applic homestead/wild-card, etc., exemptions, and I know this is an asset...question is specific and answers will help me choose atty. Context: Ch 7, All debt is credit card, unsecured. Settlement/judgment will be more than enuf to pay off creditors. Likelihood of prevailing, good to strong - 70% per my atty but may take a fight. Settle as early as 5 months but more probably in a year or more, especially if go to trial. Is there a true cut-off time/date after which the case could settle and the $ not be subject to bk - what if it settles 2 wks after that date, for instance? i am deciding whether I should file ASAP or take the time to negotiate w/creditors for significantly lower amts in case the case settles during the pendency of bk. THX.

2 Lawyer Answers

Robert Jason De Groot

  • Bankruptcy Lawyer
  • Deltona, FL

A: The very best thing you can do is to have a full discussion with a bankruptcy attorney about this. You will find that the suit you have is an asset of your bankruptcy estate if you file for bankruptcy.

Kevin W. Chern Esq.

  • Bankruptcy Lawyer
  • Chicago, IL

A: Whether or not your settlement is considered an asset in a bankruptcy case does not depend on the date of the settlement. The claim itself is an asset in the bankruptcy case if it exists as of the date of filing, so if a person files bankruptcy with a pre-existing claim, it does not matter how long it takes to settle the case or to receive compensation. The bankruptcy case may be held open pending resolution of that asset.

*Kevin Chern is Managing Partner of UpRight Law, a national law firm with licensed attorneys providing bankruptcy and consumer legal services in all 50 states. He is an Illinois licensed attorney with 21 years of federal consumer bankruptcy and consumer protection law experience. This response is for informational purposes only and is not intended to be legal advice. For legal advice, consult an attorney licensed in your state with the appropriate expertise.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.