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What was the lawsuit for? What were the damages for?
I was listed as a class member in a lawsuit against Residential Funding Corporation. Illegal, excessive interest and illegal organization. I don't know what the amount of the settlement is yet, but belive the trustee has the settlement.
That is the type of settlement that is not taxable. However, the trustee can keep the entire settlement - up to an amount that would completely pay off the creditors, plus the trustee's 10% fee.
If there is anything left after paying the creditors in full (plus trustee's fee), you will receive the balance.