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My bankruptcy got discharged nov of 2010. If I were to receive

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a settlement or win some...
My bankruptcy got discharged nov of 2010. If I were to receive a settlement or win some money, would I have to report that to the trustee that handled my case. I know there is a time frame but not sure what that time frame is.
Submitted: 6 years ago.Category: Bankruptcy Law
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7/8/2011
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified
Hi JACustomer,
If a Bankruptcy debtor was entitled receive the settlement - or had already bought the winning ticket that won money - at the time of the Bankruptcy filing, and the debtor does not inform the Bankruptcy trustee of the settlement or winnings, the Bankruptcy discharge can be revoked within one year after the discharge (November 2011 in your case) . After one year, it is no longer necessary to report a settlement or winnings. Bankruptcy Stat. 727(e).
If a Bankruptcy debtor was not entitled to receive the settlement - and had not yet bought the winning ticket - at the time of the Bankruptcy filing, that settlement and those winnings would not be part of the Bankruptcy estate, and the debtor never has to inform the trustee.

I think this is what you wanted to know. If not, please let me know.
Thank you!
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Customer reply replied 6 years ago
I was not entitled to a settlement until 8 months after the bankruptcy was discharged. With that said, I shouldn't have to report this to the trustee, correct? Thanks in advance.
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
What is the settlement for?
If the settlement is for an injury, had the injury already occurred when you filed the Bankruptcy?
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Customer reply replied 6 years ago
The settlement was for a class action lawsuit filed against my ex employer. My bankruptcy was discharged in november of 2010 and I only found out about the law suit in march or may of 2011. I got the paperwork, filled it out, and just received the check today.
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
For what period of time was the lawsuit?
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Customer reply replied 6 years ago
I don't know when the lawsuit started but the final approval hearing was may 4 2011. I got my paperwork for the lawsuit in february but I wasn't guaranteed to get anything out of the lawsuit either.
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
If the lawsuit was based on something that happened before your Bankruptcy was filed, the settlement money is supposed to be reported. If the lawsuit was based on something that happened after the Bankruptcy was filed, you do not have to report it.
In other words, what matters is when the "cause of action" (the thing that the lawsuit is based on) occurred, not when the lawsuit was filed.
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Customer reply replied 6 years ago
the lawsuit looks like it went from November 2010 to May 4 2011. The lawsuit was based on sick pay and floating holiday pay that was not payed after the employee left the company. It says I am a member of the class if between Mar 6 2005 and Dec 15 who had vested vacation pay forfeited and who was not paid your final wages within 72 hours of the date defendants records show your employment ended.. I didn't have any knowledge of this until february 2011 and everything was discharged Nov 9 2010
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
From when until when did you work for the company?
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Customer reply replied 6 years ago
The lawsuit took place after my bankruptcy was already discharged.. The lawsuit was based on sick pay and floating holiday pay that was not payed after the employee left the company. It says I am a member of the class if between Mar 6 2005 and Dec 15 who had vested vacation pay forfeited and who was not paid your final wages within 72 hours of the date defendants records show your employment ended.. I didn't have any knowledge of this until february 2011 and everything was discharged Nov 9 2010
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

From when until when did you work for the company?

For what period of time was the sick pay and holiday pay that you received?

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Customer reply replied 6 years ago
I worked for them from 06 to 08
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

That means the settlement you received is based on sick pay and/or holiday pay you were entitled to at the time the Bankruptcy was filed. So yes, you are supposed to report it to the Bankruptcy trustee.

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Customer reply replied 6 years ago
The sick and holiday pay would have been from that same time frame. 06 to 08
Customer reply replied 6 years ago
Do they usually take the money??
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

If there is no available exemption, the trustee has to take the money.

How much is the check for?

When you filed, how much money did you have in the bank?

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Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
If there is no exemption available, the trustee has to take the money.
How much is the check for?
When you filed, how much money did you have in the bank?
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Customer reply replied 6 years ago
11000. I only had like 500 bucks in the bank at the time I filed.. I remember the trustee asking me during the hearing if I came into money in the next six months would I report it. I answered yes but its been past six months.. The six month part is what I am not sure about if it was six months or longer..
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
There is a $5,000 exemption for bank accounts. If you put the check in the bank, you would be able to keep $4,500, since you already used $500 of that exemption.
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Customer reply replied 6 years ago
I just don't understand why I would have to report it if the lawsuit took place after my bankruptcy was discharged and I had no knowledge of the lawsuit until after my bankruptcy was discharged.
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
You don't have to report it. The rule is the trustee can revoke the discharge within one year after the discharge if the settlement money is not reported. After November 2011 the trustee cannot revoke the discharge even if the settlement is not reported.
cfortunato
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Category: Bankruptcy Law
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Experience: Bankruptcy professor.
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