Can I Keep the Money if I Win a Lawsuit After Filing?

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In a Nutshell

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.

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Written By:

Kristin Turner, Harvard Law Grad

Kristin is a recipient of Harvard Law School’s Public Welfare Foundation A2J Tech Fellowship. At Harvard Law, she served as a member of the Harvard Defenders, the Women’s Law Association, and the Harvard Law Negotiation Review. She was the 2016 – 2017 president of the Harvard Bla... read more about Kristin Turner, Harvard Law Grad

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Can I Keep the Money if I Win a Lawsuit After Filing?

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