If you file for Chapter 7 bankruptcy, your state's exemption law will determine whether you can keep the money from a lawsuit. Be prepared to give it up unless your state exemption law specifically says that you can keep the award.
Written by Kristin Turner, Harvard Law Grad.
Updated January 26, 2022
If you win money from a lawsuit during your Chapter 7 bankruptcy, you'll only be able to keep the money if your state's exemption law specifically says you can. Bankruptcy exemptions vary by state, so check with your state to see what's covered.