Expert: Terry Leeders - 5/30/2009

Question
A bankruptcy claim is underway, but has not yet been filed. I have a pending medical personal injury case as a plaintiff. I live in NY. I will advise the court of same at the hearing.....BUT if I collect money - will I need to surrender it?

Answer
Each state has it's own exemptions to protect different assets.  
For instance, in Illinois, a debtor can protect $15,000 of the proceeds of a personal injury case.   (The amount is after the attorneys fees and costs are deducted). Contact your bankruptcy attorney or talk to one in NY to see what can be protected.  The trustee can liquidate any other amounts above what can be protected, and use it to pay your unsecured creditors in the case.