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  1. #1
    Join Date
    Jan 2020
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    4

    Default What Happens when Trustee Liquidates Civil Action Cause

    My question involves bankruptcy in the state of: NC

    In my state, personal injury damages resulting from civil tort liquidations are exempt and remaining damages can be used to satisfy debt and pay the trustee. My question is this- what terms can the trustee subject me to in a settlement of a civil action? If the trustee settles the civil action, can the trustee agree to a nondisclosure agreement that I would personally be subject to? Can they negotiate personal injury damages as well as other damages, and then force me to accept the terms even for the components which are exempt? I would prefer to retain all rights to discuss openly the civil wrongdoing I have been subject to, and to also any other rights outside of the amount of nonexempt damages. I would like full control of all of those rights and assets.

  2. #2
    Join Date
    Jul 2018
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    1,960

    Default Re: What Happens when Trustee Liquidates Civil Action Cause

    Quote Quoting renaissance
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    In my state, personal injury damages resulting from civil tort liquidations are exempt and remaining damages can be used to satisfy debt and pay the trustee.
    This is very oddly worded, but I assume it's a reference to section 1C-1601(a)(8) of the N.C. Gen. Stats, which exempts "Compensation for personal injury, including compensation from private disability policies or annuities, or compensation for the death of a person upon whom the debtor was dependent for support, but such compensation is not exempt from claims for funeral, legal, medical, dental, hospital, and health care charges related to the accident or injury giving rise to the compensation."


    Quote Quoting renaissance
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    what terms can the trustee subject me to in a settlement of a civil action?
    I don't really understand the question (which seems to call for the creation of a list of hypothetical scenarios). If you have litigation pending relating to an alleges personal injury, a bankruptcy trustee is incredibly unlikely to take control of such litigation (unless all or a significant majority of your creditors fall within the exception to the exemption).

    If you have concerns about something like this, you need to discuss those concerns with your bankruptcy attorney and, if different, the attorney representing you in the personal injury litigation.

  3. #3
    Join Date
    Jan 2020
    Posts
    4

    Default Re: What Happens when Trustee Liquidates Civil Action Cause

    I don't really understand the question (which seems to call for the creation of a list of hypothetical scenarios). If you have litigation pending relating to an alleges personal injury, a bankruptcy trustee is incredibly unlikely to take control of such litigation (unless all or a significant majority of your creditors fall within the exception to the exemption).
    You are partially correct. I am referencing section 1C-1601(a)(8). Under the law, I do not have to have initiated legal proceedings. It events have occurred which create a cause to take legal action, that is an accrued asset in which I have a pecuniary interest. It has to be reported on my petition or I expose myself to estoppel.

    (unless all or a significant majority of your creditors fall within the exception to the exemption)
    They all do. I have a mountain of books and a computer, and a bunch of people who have did me incredibly wrong. $130k about to get charged off (with the exception of $20k federal student loan debt). I do not have a lawyer, other than me. I think I see how this works now, after having my first hearing. In the event the trustee did take up the action, he/she would hire private attorneys and we would split the pot, according to what is exempt and what is not.

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