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


Asked on 10/06/12, 11:56 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

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.

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Answered on 10/08/12, 7:44 am


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