Recently this question was asked about the feasibility of amending a bankruptcy. The client explained as follows:
“My bankruptcy was discharged in July 2010. I was eligible to receive a class action settlement that occurred before I filed in 2010, but was not aware of the settlement until 2020. Is there a guarantee that I can receive those funds from the settlement (if) I were to amend my bankruptcy? The check was sent to the trustee’s office.”
Bankruptcy Advocates attorney, Marcus Herbert, reached out to the person with his perspective on the situation. The question and answer were published on AVVO.
Mr. Herbert said:
“Without knowing what chapter the bankruptcy was filed under (Chapter 7, Chapter 13, etc.) it is challenging to offer a comprehensive answer. However, with the information provided there is no guarantee that you can receive the funds. The court needs to reopen the case and reappoint the trustee or a new one. The trustee must serve notice on all the creditors of the fact that an asset has been found and if they want to share the division of the asset proceeds then they must file a claim by a certain date.
If no claims are filed it is almost certain that the case would be reclosed and the debtor would get a refund of any undisbursed assets. I would consult with an experienced bankruptcy attorney about whether any legal arguments should be made as to why some or all of the asset might be excluded from being property of the estate, and on whether your list of claimed exemptions ought to be amended to protect some of the asset from loss to the trustee.”
Marcus Herbert has offices in Paducah, KY and Carbondale, IL. Southern Illinois Bankruptcy Attorney law firm Bankruptcy Advocates is located in Carbondale and serves a wide geographic community. We are a debt relief agency. Our southern Illinois bankruptcy attorneys help people file for relief under the Bankruptcy Code. The first consultation is always free. Give us a call at 618-549-9800 or email us at [email protected] to speak about your case or legal matter. Convenient appointment times are available.