Bankruptcy Law/discharable debt
Expert: Mark J. Markus- California Bankruptcy Attorney - 3/5/2007
Questionmy job is closing and offering severence packages if I get severance pay can the trustee take any of this money. I filed in Sept 2005 chapter 7 bankruptcy debt dicharged march 2006. My case is still open.
-------------------------------------------
The text above is a follow-up to ...
-----Question-----
Thanks for your reply. I habve another question? Does the 180 day rule apply to other payments I may receive in the future (example winning the lottery, severance pay,etc)
-------------------------------------------
The text above is a follow-up to ...
-----Question-----
I file bankrupty in Sept 2005. My debt has been discharged as of 3/26/2006. But my case is still open and the trustee took part of our income tax refund for 2005 to pay off creditors. My mom just passed away and I will be recieving her life insurance policy, can the trustee still take money for that even if my debt has been discharge or is the trustee entitled to any other money i may receive as a result of other life insurance policy or severance pay I may receive in the future.
-----Answer-----
First of all, whether an asset can be taken by the Trustee has nothing to do with when or if you receive a discharge. In your case, the Trustee is not entitled to the proceeds from the life insurance because your mother passed away more than 180 days after your case was filed.
-----Answer-----
No. Unless you purchased the lottery ticket before you filed the bankruptcy case, it doesn't belong to the Trustee.
AnswerIt depends on when the severance pay was earned. I assume you're talking about getting severance pay after your bankruptcy case was filed, not severance pay owed to you before your case was filed. I would say that no, the Trustee is not entitled to it.