Legal Question in Bankruptcy in Maryland

Out of Court Settlements

If a person files bankruptcy and later finds out that they will be rewarded in a out of court settlement on a case filed before the bankruptcy - will the money have to be turned over to the court?


Asked on 10/01/99, 3:30 pm

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

Re: Out of Court Settlements

It depends on the kind of case. The case itself should have been listed in the schedules and exempted if possible. If so, if the claim was adequately scheduled and not acted on by the trustee by the time the case was closed, it is deemed abandoned and belongs to the debtor free and clear. If the case is not closed yet, or if the claim was not adequately scheduleded, it may belong to the trustee. If it is a claim for personal injury, it is exempt, although failure to schedule it may result in loss of the exemption. See an experienced bankruptcy lawyer if you do not already have one.

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Answered on 10/06/99, 9:03 am


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