Ok, first, I'm screwed.

I owe the IRS 62K, plus I owe tons of creditors. I'm now at the point of being 100% disabled, will be going out in less than 2months. I live in South Carolina. I am going to file chapter 7, I believe ill pass the means test OK because my disability income will be half of what I made (still less than 43k for two people).

BUT, I am expecting a workers compensation settlement in about 6-9 months. I have no clue what ill get.

If I get the settlement before I finish bankruptcy, can they take all the settlement? I will have the IRS debt discharged (its older than 3 years) and almost at the 10 year statue also. BUT, my creditors would love to get their hands on ANYTHING like that for sure.

I will be a no-assett case, no house. Only one truck I own (20 years old), and a car I'm still paying for (about 3K in equity that I've paid to the dealership).

We sure need that settlement to get on our feet again and start over fresh. I've tried to make it now over 8 years, but I just can't do it anymore with the impending disability.

Any sound advice would be appreciated!

Jim

You should also check the statue of Limitations on your creditors, A lot of states have a 3 or 4 year limit.