Insurance claim settlement
August 15th, 2006 by Questions
I was involved in a car accident in 2004 and went through a lawyer to resolve a claim for me. I heard back from him recently asking for an update to my income loss since the accident.
If I file for bankruptcy in the next few months and a settlement comes through pertaining to the accident and I have not yet been discharged. Is the claim exempted or does it get seized by the Licensed Insolvency Trustee?
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August 16, 2006 at 9:30 am, Barton Goth, GCO Inc. Bankruptcy Trustees said:
This largely depends on the type of settlement that is received. If you are in bankruptcy or about to file a bankruptcy you will loose any settlements for loss of income or asset recovery. However, if the nature of the funds is a result of personal injury or pain and suffering it is typically considered exempt (depending what province you live in).
As a result of these provincial differences I suggest you contact a licensed trustee in your area and he will be able to clarify the provincial specifics.