Bankruptcy and Annuities
A few times a year a client comes to me to file bankruptcy and states that he or she has an annuity or structured settlement that they wish to “keep out” of their bankruptcy.
These clients believe that because they have some money coming to them in the future due to an accident or wrongful death of a family member, these funds are automatically protected in bankruptcy.
The truth is that this is not automatically the case. Debtors who file bankruptcy have certain “exemptions” allowed them that protect assets. Depending on the specific details of the annuity or structured settlement, they may lose all or part of these expected funds. An experienced bankruptcy attorney is needed to determine a client’s exposure to losing some of these monies when filing bankruptcy.
However, in certain instances, it is in a client’s interest to “sell” part of their annuity or structured settlement.
For instance, I had one client who had a structured settlement payment in excess of $100,000.00 to be paid to her in about 7 years. Unfortunately, she had recently been diagnosed with inoperable cancer and was expected to live less then 1 year.
Ohio law allows future payments to be sold if approved by a Probate Court Judge. The law in Ohio also requires receiving qualified independent professional advice prior to such a sale taking place.
At the Fredric Boyk Law Office we have advised many Ohio clients regarding sales of annuities and structured settlements. Our independent professional advisor letters have been accepted by probate courts throughout Ohio.
If you have questions regarding how bankruptcy would affect future monies due you or if you wish to obtain legal advice regarding the sale of your annuity or structured settlement, we can be contacted at (419) 327-6160