Legal Question in Bankruptcy in New York

Re: Chapetr 7 in ny -- post-petition income issue

When an individual debtor files for bankruptcy any income that he/she earns after the bankruptcy filing for services provided after the date of bankruptcy filing is free and clear of any claims of the bankruptcy estate/trustee. However, income received after the date of the bankruptcy filing for services performed prior to the date of bankruptcy filing is part of the bankruptcy estate (but may potentially be subject to an exemption claim depending upon amount of the income and relevant dates that services were performed).

The foregoing is not intended as legal advice for your specific situation. Facts and circumstances not disclosed in your brief posting may materially affect your rights. You should consult with an attorney.

For additional information regarding personal bankruptcy and exemption issues please free to visit the Frequently Asked Questions (FAQs) and Blog postings on our website at www.starrandstarr.com.

Best regards,

Re: Chapetr 7 in ny

Unfortunately, it looks like your lawyer might not have given you good advice, or did not thoroughily review your assets.

The fact is that your wife did a project that entitles her to royalties in the future. Thus, she has an asset, being the entitlement to the royalties. It does not matter when the publisher pays the royalties. As long as they are paid after the filing date, they are the fruits of an asset that existed at the time of the bankruptcy filing.

So the trustee is entitled to take it.

For more information about bankruptcy, please check out the library of articles I've written on bankruptcy law, practice and procedure: http://www.bankruptcycanhelp.com/published-articles.php

I wish you good luck!