Legal Question in Bankruptcy in California

Insurance Claim from Car Accident paid after Bankruptcy Discharge

I filed for chapter 7 bankruptcy a year ago and was fully discharged. The only property I had was my car worth $10, 000 and about $15,000 of debts and lots of defaulted Student Loans. I notified my attorney that I had been rear-ended in a car accident a year prior to filing and he wrote in a maximum of $15,000 in for any potential future settlement money to this claim into my bankruptcy petition. I am just now being offered a partial settlement ($7500) being paid directly to me for medical bills incurred as a result of the accident. I need to know if I am legally forced to repay these medical debts since they were not individually listed in the bankruptcy? or are they considered as part of the discharged debts since my attorney listed a $15,000 potential settlement in the petition. The insurance is paying me directly but calling my debtors to let them know that i will be receiving money which is intended for them, so that they can pursue me until I pay them. Please help me because I still need medical treatment and that is how i intend on using this money. Thanks.


Asked on 10/14/06, 12:51 am

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

Re: Insurance Claim from Car Accident paid after Bankruptcy Discharge

Omitted unsecured debts in a no-asset case are discharged. Since the BK trustee abandoned the potential recovery for the accident, it doesn't belong to the BK estate. Probably a good deal of that recovery is for your pain and suffering. Your BK attorney should protect you from doctors' claims.

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Answered on 10/14/06, 3:52 am


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