Can I Keep Money from a Health Insurance Claim After Filing Bankruptcy

[kansas_girl]

My question involves bankruptcy in the state of: Kansas

I have a Hospital Indemnity Plan which covers my children for hospital stays or outpatient surgical visits. This pays a $100/day benefit directly to me to cover expenses such as travel, time off work, deductibles, co-insurance from primary coverage, etc. It's not paid to the medical provider and it's an indemnity plan not subject to coordination of benefits.

I am about to file Chapter 7 bankruptcy, and I have not yet filed a claim under the hospital indemnity plan. Because my daughter has been hospitalized several times over the last 3 years, I have a significant claim to file. When the policy was written (over 10 years ago) there was no clause limiting the amount of time I had to file a claim. To my knowledge, this hasn't changed.

If I file bankruptcy, and then receive proceeds from this health insurance claim, can the trustee take that money?

Thank you for your help.

[Who'sThatGuy]

I don't believe that money will be protected from the bankruptcy filing, unless you truly use that money for transportation expenses and what it is intended for. What doe's your bankruptcy attorney say?

Remember if you hide that money from the court, the court cannot discharge your debit. So if you haven't asked your lawyer yet, you are advised to do so.