Asked in Bankruptcy and Consumer Law for Illinois

Q: Law suit loan company took loan money after I filed bankruptcy.

I took a loan against my workers comp case in 2018. I filed chapter 7 bankruptcy in December 2020, bankruptcy was discharged April 2021 with the loan company on the bankruptcy and they did not contest the discharge. WC attorney office paid the loan company in December 2021 when my case settled not knowing the loan was in bankruptcy. Now the loan company said they would only give me half of the money back is that legal? If not what kind of attorney do I need to hire to get a full refund?

Related Topics:
2 Lawyer Answers
Robert J. Walinski
Robert J. Walinski
Answered

A: In all probability the lender had a perfected security interest in the settlement. While any personal liability on your part was discharged, the lien would survive the discharge unless you successfully moved to avoid it. The basis for such avoidance would normally be that the lien somehow impaired one of your exemptions. Without knowing which exemptions exist in your state it is not possible to say whether the lien impaired one of them.

David Luther Woodward and Timothy Denison agree with this answer

David Luther Woodward
David Luther Woodward
Answered
  • Bankruptcy Lawyer
  • Pensacola, FL

A: You need a bankruptcy lawyer to get a turnover order.

Good Luck

d

Timothy Denison agrees with this answer

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.