Legal Question in Bankruptcy in Florida

How does a Medical Malpractice lawsuit settlement annuity figure into a personal

Recent Medical Malpractice lawsuit settlement provides for tax free annuity for 14 yrs. (until I reach S.S. retirement age of 67) Up front money was only enough to pay my attorney. The monthly payout on annuity is to be in $2000. to $2500. Month range. This is to be our only income as I am permanently disabled. We reside in FL. We have approx. $60,000. in Credit Card debts, mostly from filling in shortcomings in income during the past three years of litigation and reduced income due to injury, subsequent surgery and disability. We own our 35 yr old mobile home and 6 yr old Explorer. Will this money be considered as income and distributed to our CC acounts if we file for Bankruptcy ?


Asked on 2/29/00, 5:17 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: How does a Medical Malpractice lawsuit settlement annuity figure into a pers

In FL, there is no exemption for personal injury proceeds as there is in most states. You would have been better off getting it as a lump sum and putting it into buying a home. The whole annuity will be considered not income but an asset that the trustee will sell to pay your bills, unless it is in a suitable trust (unlikely). If you move to another state at least 90 days before filing bankruptcy, you may be able to exempt it.

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Answered on 3/13/00, 8:45 pm


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