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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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my parents filed a CA Ch 7 bankruptcy case and they were given

Customer Question

my parents filed a CA Ch 7 bankruptcy case and they were given their discharge two days ago. Yesterday, my father received a loss of wages settlement from his former employer for an amount of 8,100. He was told to motion the court to re-open his case and complete both a schedule B and C. My question is, what law do I specify...providing for that exemption on schedule C? and How do I list the judgement check on schedule B? My parents filed their bankruptcy jointly.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 4 years ago.
Hi JACustomer,
Did your parents use the System 1 or the System 2 set of exemptions?
Customer: replied 4 years ago.
system 1 I believe.
Expert:  cfortunato replied 4 years ago.

What was the reason for the loss of wages?

Customer: replied 4 years ago.
He worked 20 years for his company and during those years, he was never given the proper lunch break time. So, a group of his former co-workers filed the suit, including my father's name, and they won a settlement. My father received 8,100 as his part of pay for the loss of his lunch hours.
Expert:  cfortunato replied 4 years ago.
There is no exemption in System 1 for lost wages not based on injury. In other words, if they used System 1, they will not be able to keep the check.
Customer: replied 4 years ago.
I called the trustee and he told me to fill out schedule b and c, I'm not sure if I listed system one or can I tell? and the judgement is not for injury, it was a settlement for loss of wages???
Expert:  cfortunato replied 4 years ago.
What are some of the statute numbers on the current Schedule C?
Customer: replied 4 years ago.
11 U.S.C 522(b)(2)
11 U.S.C 522(b)(3)
or check if debtor claims a homestead exemption that exceeds $146,450*