Legal Question in Bankruptcy in Missouri

My wife is involved in a work comp case. She took an advance against the case in July 2010. We filed chapter 7 BK in Apr 2011. We mistakenly did not include the company that provided the advance so we filed an ammended schedule with the court that was accepted. Now the advance company is fighting it stating that the debt is not dischargeable since it is against the proceeds from the work comp case. Our BK attorney wants an additional $750 to research and fight this. Do we have a case or should we just let it go and pay the advance when the work comp case is finalized?


Asked on 5/04/12, 9:56 am

1 Answer from Attorneys
Anthony Smith LawSmith

You may opt to have your Bk atorney research the matter, but it appears that the finance company is correct. Unless the Trustee claims her WC proceeds as part of the trust, (and may dismiss the 7 in favor of a 13) the cleim by the advance company is agaisnt proceeds that are not part of the bankruptcy. If your wife refuses to pay, or wrongfully takes the full WC settlemtn or award, the advance company may be barred form suing her, due to the bankruptcy (assuming you get a dischrge) But, the advance company may be able to sue the WC insurer, as they probably still have alien against any moneys paid to your wife. Therefore, the real question is what does your wife do, if the insurer pays the the advance company, an dshe feels the obligation was discharged in bankruptcy? That may be worth paying your BK attorney to research.

Good luck

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Answered on 5/06/12, 8:56 pm


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