Expert: Terry Leeders - 5/12/2009

Question
I was in an auto accident 4 years ago in NC ,Moved to Atlanta 1.5 years ago to take care of 2 parents with alzheimers (I am an only child) husband still lives in NC and we commute, Husband self employed with his business down 85% .  we have to file chapt 7 since I was laid off after 34 years in the mortgage industry,  lived on my 401k and credit cards for 2 years.  now my 401k is gone, Finally I am getting the settlement from the insurance company,  can I protect that from bankruptcy seizure with a structured settlement?  What about the distributions are they subject to seizure?

Answer
Your injury settlement is an asset of the bankruptcy estate.  Your state may have exemptions to protect a portion, for instance in IL it is $15,000 of your share of the recovery. Talk to a local bankruptcy attorney to review your local exemption amounts.