Legal Question in Bankruptcy in California

Income & Spending after CH7 Filing

I'm planning to file for Chapter 7 in a few days but I'm wondering if the trustee or anyone cares about my income & spending once I've filed.

I'm wondering since I was in a car accident a while back and a settlement is probably going to be reached within a week. So I'd end up with a check worth something in the range of 10k being deposited into my bank account just days after filing. Then I'm going to go buy a car since I don't have one now (and filed as not having a car). Right now I'm expected to have a no asset case.

So basically, would they care? I would think if they found out that I got 10k a few days after filing I'd have a problem, but I've also heard that once you file, say on 04-10-07 that anything you do beyond that date doesn't mater.


Asked on 4/07/07, 4:56 am

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Income & Spending after CH7 Filing

You have to list the potential proceeds from the accident claim as a contingent asset on your Schedule B. If it's the result of a lawsuit, you also have to list the lawsuit on your Statement of Financial Affairs. Of course, you can exempt the proceeds as those of personal injury on your Schedule C. But you MUST disclose all of your assets, present and anticipated.

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Answered on 4/07/07, 7:27 am


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