In a Chapter 7 bankruptcy, you can discharge many or all of your debts. As part of the process, the trustee may take your property, which he or she will sell in order to pay debts owed to your creditors. Proceeds from a Lawsuit and Bankruptcy There are some state and federal laws that exempt some property from the bankruptcy estate. However, in the state of Illinois, proceeds from a lawsuit may not be exempt. Money that you have received from a lawsuit prior to filing bankruptcy, money you … [Read more...]