windfalls

You are required to declare the award to your trustee – it will either be treated as income (subject to the surplus income rules) or “after acquired property” (a windfall).

Based on how your trustee treats the award, you will be required to pay a portio (perhaps 100%) of the money to your trustee for the benefit of your unsecured creditors.

I realize this may sound unfair, but remember, you filed bankruptcy to eliminate your debts. Depending on the size of the award, you may want to speak to your trustee about changing your bankrupty into a proposal – perhaps your creditors will allow you to keep a bigger portion of the award that way.