The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law.
Minnesota Bankruptcy Case:
In re Meyer, 2010 WL3369375 (Bankr. D. Minn. 8/25/10) (O’Brien, J.)
Structured Settlement Payments Found are Exempt
Lynette Meyer was in a car accident. She suffered whiplash, a compression fracture of one vertebrae, a chip of another vertebrae, as well as torn ligaments and muscles in her back. Her claim was settled with a structured settlement through Farmers Union Insurance. She received cash at the time of the settlement of $10,000.00 and subsequent payments of $5,000.00 in 1989, $8,000.00 in 1994, $15,000.00 in 1999, $20,000.00 in 2004, $25,000.00 in 2009. She is due to be paid $30,000.00 in 2014 and $35,000.00 in 2019. She claimed the right to receive the future annuity payments as exempt under 11 U.S.C. § 522(d)(11)(E) which provides an exemption for “a payment in compensation of loss of future earnings . . . .” The trustee objected to the exemption claiming that the annuity was not for loss of future earnings either entirely or in part. After trial, Judge O’Brien overruled the objection and allowed the exemption, finding that the future payments were, in fact, payment and compensation for the debtor’s loss of future earnings.
Credit: The preceding was a summary of a case relevant to Minnesota bankruptcy law. The case summary was prepared by the U.S. Bankruptcy Court through Judge Robert J. Kressel & attorney Faye Knowles.