Unexpected Check Bankruptcy Handling

Summary

If you receive an unexpected check before filing for bankruptcy, it must be disclosed to the bankruptcy trustee. In Indiana, personal injury settlements may be exempt up to $10,000. Consult with your attorney to determine if the check can be exempted or included in the bankruptcy estate. Properly claiming the exemption in your bankruptcy filings is crucial.

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In Indiana, I received an unexpected check for $* dated *.*.* and funds were deposited *.*.*. My bankruptcy was filed *.*.*. How should I handle it ?
Hi Renee! This situation is complex due to the timing of the check and your bankruptcy filing. Generally, any assets received before filing bankruptcy must be disclosed. Here are some steps to consider:
- Inform your bankruptcy trustee about the check.
- Discuss with your attorney to determine if the check can be exempted or if it must be included in the bankruptcy estate.
Do you need more specific information about bankruptcy exemptions in Indiana?
Yes. This check was directly related to my son breaking his back.
Renee, since the check is related to your son's injury, it might be considered differently in your bankruptcy case. Here are some points to consider:
- Personal injury settlements can sometimes be exempt from bankruptcy.
- Indiana law may have specific exemptions for personal injury settlements.
Would you like more details about personal injury exemptions in Indiana?
Yes
Renee, here are some details about personal injury exemptions in Indiana:
- Indiana law allows for a personal injury exemption up to $*,*.
- This exemption can protect a portion or all of the settlement from being included in the bankruptcy estate.
- The exemption must be claimed properly in your bankruptcy filings.
Would you like more information on how to claim this exemption?