Legal Question in Bankruptcy in Connecticut

bankruptcy and annuity

I am on disability without standing medical bills and a couple of credit card bills that I can not pay on my income, I have an annuity that will be paybale to me for my daughters education that i recieved from a car accident back in 1989 If I file bankruptcy can they take my annuity to payoff the creditors? Or is it protected? I would like to know before i file thank you...


Asked on 4/04/03, 4:06 pm

1 Answer from Attorneys
Joel M. Grafstein Grafstein & Arcaro, LLC

Re: bankruptcy and annuity

Without looking at the annuity contract it is hard to give a definite answer. However, generally the Bankuptcy Code protects from creditors a payment for loss of future earnings to the extent reasonably necessary for the support of the debtor. (Section 522(d)(11)(E)). It sounds as if this would be the case. If you can cash in your annuity, then it is likely not to be exempt from creditors. Normally, an annuity as a result of an accident, is designed to compensate you for your loss of future income. Good Luck.

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Answered on 4/06/03, 11:46 am


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