Legal Question in Bankruptcy in Illinois

Would like to file bankruptcy, I have about 50000. in unpaid credit. I recieved a workmans comp settlemant in july 09. I spent some on utilities, rent and childs tuition. I repaid a relative who had lent us 6000. The rest was spent on various things, computer for the kids, gifts, and a short vacation. My lawyer says that this is a big problem. How long will I have to wait now to file, or can I still go ahaed.


Asked on 1/09/10, 10:11 am

2 Answers from Attorneys
John Steele Steele Law Firm

You state you have a lawyer. So if he tells you that you have a problem you might have one. I do not have enough facts to advise you on the matter. If your attorney does not do bankruptcy law, perhaps he is mistaken. Workers comp cases do not affect your income for purposes of bankruptcy

Read more
Answered on 1/14/10, 10:22 am
Frank Vosholler Law Office of Frank L. Vosholler III

Actually workmen's comp does get added into income, but the problem is not the income rather how you spent it. The 6,000 loan pay back to a relative is paying a preferred creditor and the trustee is looking out for all creditors, therefore, the 6000 at least would have to be paid to the trustee to individually pay a percentage to creditors. Once there are enough necessary expenses to show all of the workman's comp money has been spent you can file, but receipts may be needed.

Read more
Answered on 1/14/10, 10:40 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Illinois