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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12403
Experience:  JD, MBA
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I am disabled and in the fourth year of chapter 7 bankrupcy,

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I am disabled and in the fourth year of chapter 7 bankrupcy, won a lawsuit against TWIA for underpayment on damage. The amount won is being termed, (incorrectly I believe) a "windfall", and is being attached by the trustee to pay the unsecured debts. Because this money is for damage to my house and for my family's suffering from living in a very badly damaged home, taking all of these funds will put undue additional hardship and suffering on my family. This was a planned, forseen event, and is not actual profit. Is there any way to stop the attachment of funds by the trustee? Thank you, XXXXX XXXXX
Hello and thank you for allowing me the opportunity to assist you.

I think that you meant that you're in the fourth year of a Chapter 13 (a Chapter 7 is liquidation, which usually only lasts about 4 months).

Unfortunately, I have to agree with your attorney regarding the insurance funds. It's not that I don't sympathize with you (I certainly do), but the law does not make exceptions for your situation. The result would be the same if you were given the money right before you filed for bankruptcy as well. It also does not matter that it was foreseen that you would get the money and that it's not actual profit. When you list assets in your bankruptcy schedules, you must them from all sources ... even if the source is an insurance company.

I am truly sorry to give you this bad news, but please understand that it would be unfair to you (and unprofessional of me) to provide you with anything less than an honest response. However, if your concerns were not satisfactorily addressed, then please let me know, and I will be happy to clarify my answer. Please remember to rate me based upon whether I answered your question, and not upon whether the answer was good news or bad news. Your positive feedback is greatly appreciated.

Thank you and good luck!
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