A federal judge recently ruled that people in bankruptcy cannot receive any personal injury settlement money until their creditors are paid in full.
Three years after his Chapter 13 creditor repayment plan was confirmed, Clyde Wilson sustained serious injuries in a car crash and received a $197,000 settlement. In determining that the money belonged to the bankruptcy trustee for the benefit of the creditors and not Mr. Wilson personally, U.S. Bankruptcy Judge John Kolwe, in the Western District of Louisiana, applied the “estate-replenishment test” and ordered Mr. Wilson to turn over the money. [Read more…] about Bankruptcy Court Confiscates Personal Injury Settlement