Legal Question in Bankruptcy in Utah
we are in a chapter 13 bankruptcy in utah, it is about to be dismissed, we could not make the payments, we have recently received information from a previous employer offering a lump sum payout on our pension. if we take the lump sum payout and pay our mortgage current how will that affect filing a chpater 7 later
1 Answer from Attorneys
If you receive the lump sum before your case is dismissed you will need to pay that to the bankruptcy trustee. The money will be distributed to your unsecured creditors. In the alternate your case could be converted to Ch 7 and the money used to pay creditors.
If you receive the money after dismissal then you have discretion on how to use that money. You could use the money to settle with your creditors at that point.
You should have legal counsel to assist.
Related Questions & Answers
-
Parents own their home outright (valued at about $116,000), they owe about $55,000... Asked 7/22/12, 5:33 pm in United States Utah Bankruptcy Law
-
Is it legal to sell a loan that i filed bankruptcy on? Asked 2/16/12, 3:08 pm in United States Utah Bankruptcy Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
