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What is the name of your state? california bk filed in april, court date was may 8th, bk not yet discharged, we got a settlement check for property damage at the end of may, can this money be taken?

[Elmo-1]

If the property was damaged before your filing date, the settlement needs to be reported to the Trustee. And yes it will likely be lost. If you don't report it you risk getting your case dismissed or denied with possible/probable criminal fraud charges (jail time and a big fine). It isn't worth the chance. Trustee's have to many resources to find out things like this on their own.

If the property was damaged after your file date, the settlement is yours and you don't have to report it to the Trustee.