Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Because the fraud occurred (the cause of action accrued) before the Bankruptcy was filed, any compensation you receive from that lawsuit will be subject to the Bankruptcy court. This means you would be able to keep any portion for which you have an exemption, and the rest would go to pay creditors.
I think this is what you wanted to know. If not, please let me know.Thank you!
Do you mean "an exception to discharge", or did you mean an "exemption"?
The exemptions are the assets that you are allowed to keep when you file a Bankruptcy. In California a debtor has a choice of 2 different sets of exemptions.
Whether and how much of an award you would be able to keep will depend on how much the award is, which set of exemptions you used, and how much - if any - available exemptions (assets) were left over that you can use for the award.
A trustee will only abandon assets that have no value, or a value less than an available exemption.