Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hello, and thank you for contacting Just Answer. My name isXXXXX am a bankruptcy law professional, and I look forward to answering your questions today. Just so I am clear on what you are asking, are we talking about a chapter 7 bankruptcy?
Great, thank you for the extra information. In a chapter 7 bankruptcy, the bankruptcy trustee generally has access to everything in the bankruptcy estate. The bankruptcy estate is every asset the bankruptcy debtor has, as well as any right to an asset or funds they have accrued, during the year in which the bankruptcy is filed. So, for example, let's say the bankruptcy petition is filed Jan 1st 2013, but the tax refund for 2012 is not received until March of 2013. Because the right to that refund accrued prior to the bankruptcy filing, the trustee will likely at least look at seizing that return.
That one return, however, is the only one that would be a part of the bankruptcy estate, any refunds that accrue during a period after the bankruptcy is filed would not be a part of the bankruptcy estate.
ok so just first yr after bankruptcy?
Generally, yes. Again, this is because the trustee can only go after assets that you had a right to BEFORE and UP TO the date that the bankruptcy was filed. Anything that was earned (as opposed to received) AFTER the date of filing is generally not considered part of the bankruptcy estate, although there are certainly exceptions, particularly inheritances. That is where a claim for a spouse's death could come in to play.
Generally, if you receive an inheritance or distribution from a deceased's estate within 180 days of the filing of a bankruptcy petition, that is also subject to possible seizure by the bankruptcy trustee.
i am not talking inheritance i am talking med suit because of an illness from like labor and indust
from another state also
Unfortunately, right to settlement or award from a lawsuit are also subject to the trustee so long as the right to the money accrued prior to the bankruptcy. If the injury or death occurred after the petition is filed, then it may be exempt, but if the right to sue (meaning the injury) occurred prior to filing for bankruptcy, unfortunately that would be subject to the trustee's right to take over, even if it occurred in a different state.
The general rule is, any right to sue or money accrued before bankruptcy, subject to trustee control. Any right to sue or money accrued post filing, not subject to trustee control, with some exceptions.
k thank you for your time
The easiest way to think about it is that the trustee basically steps in and takes over any assets or rights of action that accrue prior to the filing of the bankruptcy petition.
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k yes that is all for today