receive money before BK how long should I wait before file?

[toribowl]

What is the name of your state (only U.S. law)? CA

Hi, Me and my friend were talking about his situation. He doesn't have an account on here so I figured i'd ask.

He states he is about 48k in debt and wants to file BK because he's getting overwhelmed with bills. If he happens to win his upcoming settlement and receives money from his case, how long does he have to wait before it becomes exempt from the BK trustee? (like certain things have limits such as 90 days before filing) he said that his BK attorney wants 6 months of bank statements and pay stubs. if he wins, should he wait 6 months after he receives his settlement check?

he's unemployed right now so his settlement money would be the only savings he has. (hes disabled but lawsuit is not related)



dont kill the messenger plz

 

[despritfreya]

Tell your friend to discuss this with a qualified bk attny. 6 months or 6 years it does not matter. Whatever he owns on the day he files, if not exempt under state law, is subject to seizure by a Chapter 7 trustee.

California has two exemption statutes. He needs to decide which one protects the most of the assets he has.

Tell him not to play games. He does not hide the $$. He does not give it to you for "safe keeping". No games unless he wants to spend some time in "club fed" when he gets caught.

Oh, and as to the settlement, maybe he can use the money to avoid bk by either paying what he owes or negotiating a lesser amount.

Edt - missed the part that he is unemployed & disabled. Chances are, unless he gets a job and/or SSDI, he will be living off of the money and when it is legitimately spent he thinks about a bk.

Des.