Expert: Terry Leeders - 4/10/2009

Question
My wife and I were discharged from Chapter 7 bankruptcy in December 2008.  Before we filed we were with a Debt Settlement Company and we were receiving harassing calls from a company that was hired by a credit card company to collect the debt.  The Debt Settlement Company hired a lawyer without our knowledge.( Note we left the Debt Settlement group and filed bankruptcy.) The Lawyer contacted us last week April 2009 and stated that he had a small settlement of $2,000 for us and sent us paper work to fill out to get the settlement.  Is this something we can accept without having to go back to bankruptcy court or without having to file a motion as an asset we received after being discharged.  Or should we just let the settlement go and not accept it?

Answer
Yes, you can accept it. You should talk with your bankruptcy lawyer to see that there is an available exemption.  You should file an amended schedule and send it with a note to the trustee, indicating that you were not aware this was taking place.  The case may need to be reopened, but by doing it this way, it will prevent any challenges down the line.