What happens to new money after bankruptcy

Letter to “Ask Leon”

I was hoping to settle some credit card debts when I received a settlement from an injury claim that happened a year ago. When I called the company handling the claim he said that my injury was very small and it would be another year before I received anything or possibly nothing. Now I’m considering bankruptcy. I also owe on personal loans to friends and family. My question is if I were to file bankruptcy now and receive a settlement at a later date, is there a time limit where that money would no longer be included in the bankruptcy. If I did receive something after I filed bankruptcy I would like to use it to pay off my friends and family. But, I wouldn’t want someone coming after me for it after I already paid it out.

Leon Says…

The injury claim is one of your assets, and whether or not your will be allowed to keep it depends on whether it is “exempt” from bankruptcy in the jurisdiction where you live. You really need an “in person” consultation with an attorney who is a bankruptcy expert. Most lawyers do not charge anything for an initial consultation, so there is no reason to put this off.

You can get some background about exemptions and how they work by reading the Exemption section in my bankruptcy guide. Be sure to read all 3 sections, and then please contact an attorney. Go to:
http://www.debt-relief-bankruptcy.com/faq-browse11-5/bankruptcy-guide.asp