MVA Settlement/Bankruptcy

Our MVA client filed bankruptcy after treatment for injuries and the bodily injury claim is listed on his Schedule B. His medical bills were discharged and the settlement is within the exemption. Since part of the settlement is actually for medical bills, do the providers have any right to the settlement proceeds?

Answer: Isn’t your problem that the BI claim is now an asset of the bankruptcy and belongs to the trustee? Maybe your client has listed the claim as an asset and can claim an exemption from creditors but it doesn’t sound like that’s what happened. Unless the health care providers had liens filed, there bill is discharged and they are out of luck.