Legal Question in Bankruptcy in Michigan

Receiving Settlement After Bankruptcy

My husband and I are soon going to be filing for chapter 7 bankrupty due to over five years of medical bills and credit card debt due to multiple job losses. My husband will possibly go to an EEOC mediation hearing with a charge against his former employer for discrimination and has the potential of getting offered a settlement due to wages lost and medical insurance premiums. How would a settlement such as this be factored into the bankruptcy?


Asked on 5/16/07, 5:35 pm

2 Answers from Attorneys
Regina Mullen Legal Data Services, PLC

Re: Receiving Settlement After Bankruptcy

Your attorney should explain that to you, for any one else to comment on the facts would be unethical.

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Answered on 5/16/07, 5:48 pm
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: Receiving Settlement After Bankruptcy

One of the questions on a bankruptcy petitions specifically asks if you are involved in any lawsuits and/or expecting any money from a lawsuit. However, an EEOC complaint is different, and the money he is receiving is lost wages - it's not like he would be receiving a lump sum for "harassment" or some other tort claim (such as an auto accident, etc). The court will definitely take it into consideration and needs to be informed about it (always be honest with the bankruptcy court), but depending on what the proceeds are for, it may or may not be used to pay off your debt.

Your best option is to contact an attorney who has handled a ton of bankruptcies and can answer any questions you may have. I recommend Scott Kappler in Plymouth - he is honest and fair.

Thanks.

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Answered on 5/16/07, 8:59 pm


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