In filing chapter 7 bankruptcy can the court take your children’s money that they?
admin | Apr 26, 2010 | Comments 4
received from a personal injury settlement. I am getting some money and my two children 11yrs ancient and 13 yrs ancient are getting some money from a car accident. Can the bankruptcy court take their share of the money or is it protected. We will be filing a Chp 7 bankruptcy in about 1 month.
Popularity: 1% [?]
Filed Under: Bankruptcy
Only yours … anything in their names can’t be touched since it’s not their debt.
In bankruptcy you will be listing YOUR assets and YOUR liabilities. Their money is protected.
Your children’s share is protected. But, as they are minors their money needs to be placed into a custodial account. You can be the custodian but it is very valuable that you do not comingle their money with yours.
Depending on where you file, you should be able to exempt or shelter some or all of the settlement proceeds coming your way. If there are proceeds that you cannot shelter, those funds would be at risk. You do not want to risk your children’s funds by co-mingling.
Finally, you want to make sure to reveal your pending PI aver in your schedules and you will want to make your PI lawyer aware of your pending filing as the The boards 7 trustee has the aptly to “step in your shoes” and take over your case – and his interests may be different from yours.
what does your lawyer say and do not caution me you are doing this on your own!!!!