Skip to main content
Help Center
banner

Eleventh Circuit: Chapter 13 Debtor Keeps Settlement of a Personal Injury Claim

Lorem ipsum dolor sit amet consectetur, adipisicing elit. Soluta dolorem consequuntur corporis pariatur rem aliquam similique animi fugiat iure explicabo eius omnis minima labore natus, repellat aut odio fuga vero. Lorem ipsum dolor sit amet consectetur, adipisicing elit. Soluta dolorem consequuntur corporis pariatur rem aliquam similique animi fugiat iure explicabo eius omnis minima labore natus, repellat aut odio fuga vero.

Lorem ipsum dolor sit amet consectetur, adipisicing elit. Soluta dolorem consequuntur corporis pariatur remaliquam similique animi fugiat iure explicabo eius omnis minima labore natus, repellat aut odio fuga vero.

Lorem ipsum dolor sit amet consectetur, adipisicing elit. Soluta dolorem consequuntur corporis pariatur remaliquam similique animi fugiat iure explicabo eius omnis minima labore natus, repellat aut odio fuga vero. Lorem ipsum dolor sit amet consectetur, adipisicing elit. Soluta dolorem consequuntur corporis pariatur remaliquam similique animi fugiat iure explicabo eius omnis minima labore natus, repellat aut odio fuga vero.

Lorem ipsum dolor sit amet consectetur, adipisicing elit. Soluta dolorem consequuntur corporis pariatur remaliquam similique animi fugiat iure explicabo eius omnis minima labore natus, repellat aut odio fuga vero. Lorem ipsum dolor sit amet consectetur, adipisicing elit. Soluta dolorem consequuntur corporis pariatur remaliquam similique animi fugiat iure explicabo eius omnis minima labore natus, repellat aut odio fuga vero.

ABIABI MEMBERS ONLY

ABI Membership is required to access the full summary. please log in using your ABI Member credentials.

Not a Member yet? Try Us Out!

Sign up to receive Rochelle's Daily Wire and try out our membership for 30 days. When you do — you'll see why our members "Think ABI First."

Learn More
Neil Gordon

These cases seem to turn on the particular facts of the case. In my capacity as a chapter 7 trustee, I have administered a case converted after a substantial mid-six figure PI settlement that had not even been disclosed in the chapter 13 phase of the case. The accident was post-petition. Debtors had distributed most of the money as gifts to family members and to buy them each a used Mercedes. One cannot really then argue that the debtors needed the funds for their own medical expenses or to replace assets when they had quickly and with no notice to anyone dissipated most of the funds from the settlement. They could have stayed in chapter 13 and fully funded the plan with just 5% of the recovery. In the subject case, if debtor converted to chapter 7, it would be a good faith conversion and the settlement funds would not have been property of the estate. Perhaps that is what they should have done unless there were other assets (like a home) with non-exempt equity that prevented them from doing so.
Tue, 2025-08-12 08:27 Permalink