If I get hurt in an auto accident after I file chapter 13, will I lose the money or do I get to keep it?

You can keep it, so long as you can claim it as exempt, or if you are already repaying your creditors 100% through your plan.

In a recent case in Bankruptcy Court in Houston, Texas, U.S. Bankruptcy Judge Marvin Isgur ruled that a lady could claim as exempt and keep part of the money that she was due from an auto accident, that had happened after she filed chapter 13 bankruptcy.

The judge allowed her to amend her "Schedule C" and claim as exempt $10,000 of the $16,000 that she was going to receive from the lawsuit, after her lawyer and other costs were paid.

The chapter 13 trustee received the rest of the money from the auto accident, and this money was to be paid to unsecured creditors. In re Bratcher, Bankr. S.D. TX 2013.

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization