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LawTalk
LawTalk, Attorney
Category: Legal
Satisfied Customers: 35309
Experience:  I am a practicing attorney with more than 30 years of experience in the legal field.
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My husband filed bankruptcy 2011 & passed away suddenly 6-2013.

Customer Question

My husband filed bankruptcy 2011 & passed away suddenly 6-2013. He has a pending lawsuit which is to be settled b4 end of year. Does Bankruptrcy trustee get this money?
Submitted: 1 year ago.
Category: Legal
Expert:  LawTalk replied 1 year ago.
Good afternoon,
I'm Doug, and I'm very sorry for your loss. My goal is to provide you with excellent service today. In order to give you a clear and concise answer, I will need some additional information about the circumstances, please.
1. Is the bankruptcy continuing through your husband's estate?
2. What is the nature of the pending lawsuit? What is the lawsuit all about?
3. Was this a chapter 7 or chapter 11 filing by your husband?
4. Has or was the lawsuit disclosed to the court as an asset?
5. You say the bankruptcy has already been discouraged? When did that happen?
Doug
Customer: replied 1 year ago.
a small estate was set up with courts, as my husband had a truck that was in his name only. There was no will. In order to transfer truck into my name, I was told a small estate had to be established. Also, he was receiving asbestos checks due to a settlement he had won from that. Those payments are about $300-$400 per year, if any. The pending lawsuit is about a medication he was taking that caused him to develop cancer . He filed a chapter 7. I do not know if lawsuit was disclosed as an asset as I do not have his bankruptcy papers. His bankruptcy was discharged 6/2011. To my knowledge he only had one creditor that was included in his bankruptcy that was not paid. The only other creditor was the mortgage of the home we lived in and in which I still live. The mortgage has never been delinquent & continues to be paid by me.
Expert:  LawTalk replied 1 year ago.
Good afternoon,
If the pharmaceutical lawsuit was initiated before or during the bankruptcy proceeding, then it should have been identified as an asset of your husband's estate and the trustee would have had the final approval as to whether settlement occurred. Your husband would have been entitled to some of the proceeds of settlement and the remainder would have been used to pay the creditor.
The company, or the attorneys for that company, would have been out on notice by the trustee that the trustee claimed the right to control the lawsuit had the court been made award of the claim.
If the claim was not even made, or its viability known about, until after the bankruptcy discharge date then your husband would not have had to notify the court of the pending claim nor to share the proceeds of settlement with the creditor. So, you will need to look to the time the claim was filed, and to the time that the bankruptcy was open (between filing and discharge) to determine whether you owe an obligation to notify the court of the pending settlement.
You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.
Please remember to rate my service to you so that I can be compensated for helping you.
I wish you and yours the best in 2015,
Doug