Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.
No, you should not assume that the trustee has abandoned this claim. Instead, the trustee is likely waiting to see if you get any money out of it, because until then, there is no asset.
Thus, if you settle the claim, you will have to report the settlement to the trustee because this is income from a claim you had before filing bankruptcy, so it is subject to bankruptcy trustee's governance.
Usually, the court orders you to proceed with your case in civil court and report the findings back to the court and trustee when the case is over - that's how it has been done in any bankruptcy I've been involved in.
But, the bottom line is that if you don't have an abandonment of claim from the trustee, you should not assume he has abandoned it.
Yes, you should be able to use your wildcard exemption to protect all or part of the settlement. As for the movin expenses, you may be able to categorize this as an expense, not income, and keep it from the trustee.
I would recommend that you have your attorney speak with the trustee to see what agreement you can reach.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).