Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Thank you for your response.Yes - you should inform your attorney that you received the money from the insurance company. Since the money was not listed on your Bankruptcy paperwork, he will have to submit some amended forms - which is easy to do.Since your assets are protected up to $22,000, you should be able to keep the re-imbursement. This means you can do anything with it, including opening a new bank account to cash it, and to pay your relatives.
It is perfectly okay that you already deposited the check before telling your attorney. (You cannot get into trouble because of this.) Since your attorney said he can only protect $22K of your assets, you may have to give $770 to the Bankruptcy court. Your attorney will let you know.
If these are re-imbursements for claims that existed before your Bankrutpcy was filed, they are supposed to be reported to the Bankruptcy court (through your attorney). However, any money you receive for claims (eg. accidents) that occurred after your Bankruptcy was filed do not get reported to anyone.
If there is an exemption for the $22K, then they cannot make your brother give back the money. (Exemption is the amount of assets you are allowed to keep.) It does not matter that you opened a new bank account.However, it is true that if the trustee does not find out about the money, then nothing will happen.No - the trustee cannot find out about the money by your Social Security number. The only way the trustee can find out about the money is if you or your attorney tells him about the money.