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Question Re Disability Settlement
charset="windows-1251"
Even if you are 100% correct, the Court may cause the case to be dismissed
as a "substantial abuse".
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Cola
Sent: Monday, May 24, 2010 10:56 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Re: Question Re Disability Settlement
I have encountered this same question. My client wants to take a lump-sum
payout of his disability benefits. I have already read the code and it looks
pretty straightforward, but I want to verify my understanding here so as not
to be on the wrong end of a million dollar problem.
I have examined CCP 703.140(b)(10)(c) which covers disability benefits
generally, and CCP 704.120 which covers the exemptability of disability
benefits with specificity. To my precise issue, CCP 704.120(c) states:
"After payment, benefits described in subsection (b) are exempt."
(Subsection (b) iterates various types of disability.)
Am I right to understand here that if my client accepts the buyout offer of
his benefits reaching into a million dollars or more that all of this money
is exempt under CCP 704.120(c)? This seems to be the plain reading of the
statute. However, it may be that a lump-sum payout is not a "benefit."
If so, is there some limit to this principle? That is, would it also protect
any subsequent use of that money so long as it is traceable to a 704.120(c)
source?
Thanks to all in advance. RC Lim
"michaelshemtoub" wrote:
>
> All-
>
> I have a widow whose late husband applied for disability in 2006 and was
denied. He re-applied and before a decision could be made he passed away.
His wife continued to pursue the case and is now expecting a judgment in his
favor of around $50,000 of back disability he should have received from the
date he applied until the date of his death. Can this be protected through
bankruptcy if the widowed wife files?
>
> Thanks in advance!
>
> Michael Shemtoub
>
charset="windows-1251"
Message
Even if you are 100%
correct, the Court may cause the case to be dismissed as a "substantial
abuse".
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
I have encountered this same question. My client wants to take a lump-sum payout of his disability benefits. I have already read the code and it looks pretty straightforward, but I want to verify my understanding here so as not to be on the wrong end of a million dollar problem.
I have examined CCP 703.140(b)(10)(c) which covers disability benefits generally, and CCP 704.120 which covers the exemptability of disability benefits with specificity. To my precise issue, CCP 704.120(c) states: "After payment, benefits described in subsection (b) are exempt." (Subsection (b) iterates various types of disability.)
Am I right to understand here that if my client accepts the buyout offer of his benefits reaching into a million dollars or more that all of this money is exempt under CCP 704.120(c)? This seems to be the plain reading of the statute. However, it may be that a lump-sum payout is not a "benefit."
If so, is there some limit to this principle? That is, would it also protect any subsequent use of that money so long as it is traceable to a 704.120(c) source?
Thanks to all in advance. RC Lim
e:
>
> All-
>
> I have a widow whose late husband applied for disability in 2006 and was denied. He re-applied and before a decision could be made he passed away. His wife continued to pursue the case and is now expecting a judgment in his favor of around $50,000 of back disability he should have received from the date he applied until the date of his death. Can this be protected through bankruptcy if the widowed wife files?
>
> Thanks in advance!
>
> Michael Shemtoub
>
The post was migrated from Yahoo.
charset="windows-1251"
Please review the available exemptions and suggest those which might be
applicable.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
michaelshemtoub
Sent: Friday, May 14, 2010 4:20 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Question Re Disability Settlement
All-
I have a widow whose late husband applied for disability in 2006 and was
denied. He re-applied and before a decision could be made he passed away.
His wife continued to pursue the case and is now expecting a judgment in his
favor of around $50,000 of back disability he should have received from the
date he applied until the date of his death. Can this be protected through
bankruptcy if the widowed wife files?
Thanks in advance!
Michael Shemtoub
charset="windows-1251"
Message
Please review the available
exemptions and suggest those which might be applicable.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
All-
I have a widow whose late husband applied for disability in 2006 and was denied. He re-applied and before a decision could be made he passed away. His wife continued to pursue the case and is now expecting a judgment in his favor of around $50,000 of back disability he should have received from the date he applied until the date of his death. Can this be protected through bankruptcy if the widowed wife files?
Thanks in advance!
Michael Shemtoub
The post was migrated from Yahoo.