The Lawsuit was required to be listed as an asset. If it was listed, and then abandoned by the Trustee, then it is yours to pursue.
If it was not listed, then it belongs to the BK estate managed by the Trustee, until the BK case is reopened and the Trustee determines whether or not it is an asset and how to manage it.. regardless of how many years have passed (because the lawsuit does not belong to you anymore, unless the Trustee makes that written statement that it has been abandoned).
Once a bankruptcy petition is filed and a trustee appointed, " 'the right to pursue causes of action formerly belonging to the debtor , vests in the trustee for the benefit of the estate.' " (Bauer v. Commerce Union Bank, 859 F.2d 438, 441 (6th Cir. 1988)(quoting Jefferson v. Mississippi Gulf Coast YMCA, 73 B.R. 179, 181-182 (S.D.Miss.1986)). )
Accordingly, a bankruptcy petitioner loses standing for causes of action and the estate becomes the real party in interest unless the bankruptcy trustee abandons the claims. (See In re Lopez, 283 B.R. 22, 28-29 (9th Cir. 2002); In re Pace, 146 B.R. 562, 565-66 (9th Cir. 1992).)
Because the trustee controls the estate, the trustee is the real party in interest with standing to sue under any cause of action that belonged to the debtor when the petition was filed. It follows that "the decision whether to pursue a claim or not is vested within the trustee's discretion." (Detrick v. Panalpina, Inc., 108 F.3d 529, 535 (4th Cir. 1997).)
bankruptcy - chapter 11
The bankrutpcy court can take jurisdiction of almost any case, and the trustee can decide if the settlement is fair. If it is for the benefit of the BK estate, the lawsuit is part of the assets he controls.
"Bankruptcy" does not take anything. The Chapter 13 Trustee is the one who "takes" anything there is to be taken. And, no, your settlement - if you mean a retroactive check for disability (SSDI) - is not available to the trustee. If you are talking about a settlement of a lawsuit, probably not, unless the cause of action existed at the time you filed the c. 13 and did not exempt any possible award. Talk to your bankruptcy lawyer.
Yes. History is full of examples.
Yes there are many services that will pay you an advance on pending litigation proceeds.
Very possibly.
No, it is an asset and must be disclosed.
Lawsuit settlement funding can include a cash advance for a settlement. There are several companies that offer lawsuit settlement options.
The answer to this question depends on a number of important factors, including when the claim arose, what type of bankruptcy has been filed and whether the type of claim is exempt under state law. In a Chapter 7 bankruptcy, the court appoints a trustee who is responsible for collecting and selling all of your nonexempt assets for the benefit of your creditors. The lawsuit or potential claim must be disclosed in your bankruptcy papers like any other asset. The trustee might have a claim or lien on the proceeds from the lawsuit. If the claim arose after you filed for Chapter 7, then the trustee has no interest in the lawsuit. In a Chapter 13 bankrupty, you generally keep all of your property while you make payments. In order to keep all of your property, you must pledge to pay all of your excess income over a period of 3-5 years for the benefit of creditors. The lawsuit MIGHT be income that needs to go into the Chapter 13 plan.
Why aren't you asking your bankruptcy attorney? It depends on the amount and what the award is for. And the details may depend on what bankruptcy court your 13 is in. You may be able to use the money to prepay your 13 plan and get out of bankruptcy. The money would go to you, not the bankruptcy attorney (unless you owe the attorney money). What claim the trustee would have is the issue.
A lawsuit settlement loan is a loan offered to individuals that need money for a lawsuit settlement. One way to go about getting one is the visit LawsuitFunding at lawsuitssettlementfunding.com and apply for their lawsuit settlement loans.
yes