INSURANCE SETTLEMENT

Hi,
my situation is this. just filed for bankruptcy. so i have 20 months until discharge.
my wife was in a bad car accident 2 years ago. there is talk of a large insurance settlement coming her way .... when im not sure, but it could be during the next 20 months.
this was the first question i asked my Trustee and the financial adviser I'm working with.
they have said if she gets a settlement it will have nothing to do with me or my payments to the trustee.
yesterday i had my first meeting and meet with and my adviser was out so i meet with an accountant.
i asked him the same question and i got a very different answer.
He said every dollar outside of the pain & suffering  will affect my surplus income.
So say she is given 20,000 outside of the pain and suffering for her retraining and loss wage. That could greatly change my payment amount.
i can say with all honesty if this is the case
she will divorce me
and i will never be able to make that payment. As i filled for bankruptcy for a reason.
I feel duped "trustee" lied to me and convinced me this wouldnt have an impact on me.
any suggestions.

thanks

Would the $20,000 settlement count towards your income?

Maybe - I don't want to make a suggestion that I can't back up. However, there are two things to consider.

1) If this does happen AND the trustee says it counts as income, you can apply for mediation under Section 68(6), where you can mediate the amount payable.

2) Surplus income only counts if your wife is part of your "Family Unit" under Directive 11R2, which states: 'The bankrupt's family unit includes... any persons who reside in the same household and who benefit from either the expenses incurred or income earned by the bankrupt, or who contribute to such expenses or earnings'. So if you don't benefit from the earnings because you are living apart, this might not apply.