Chapter 13 and accident settlements

[strongone]

What is the name of your state (only U.S. law)? VA

Hello,
I am seriously in debt, mostly due to a divorce that was final two years ago. To add to that, I was in a bad car accident in Oct 07, which caused me to have to buy a vehicle. My van was paid in full and was totaled in the accident, which wasn't my fault. I have chronic injuries (had broken bone, lacerations, head injury, etc). The other driver was charged with reckless driving, and her insurance company accepted liability. She is underinsured, but I have UM coverage, so my company is expected to cover the difference. My attorney thinks my case is worth at least 100k. Even if I get that much, after everything is taken out of course I will have a lot less than that (and I am not counting on getting a settlement that high).

I am seriously considering bankruptcy. I am a single mother of two, work full time, and have about $20k in credit card (three cards) debt (divorce...long story). I have a decent steady income, but it is not nearly enough to support my debt. I am behind on all three credit cards...and two of the companies are not willing to work out payment arrangements with me and have sent me to collections attorneys. I mailed the attorneys letters asking for debt verification and am waiting for responses. The credit cards were opened in my name, but I believe my ex-husband opened both of them. At the time, he couldn't get credit because of six-figure student loans.

If I file for bankruptcy (Chapter 13 is what I am considering), what will happen to my accident settlement when I receive it? I would prefer Chapter 13, because I would like to pay my debt off instead of losing my house, etc. I am planning on paying all of my debt off in full after my settlement is rec'd, but I am not sure when that will be. I consulted with a debt management nonprofit a few months ago, but the payment plan they worked out for me was way beyond what I can afford. I own a home with my ex-husband, but I live in it. We split the mortgage payments, but the house is in both of our names.

How does this work? Thank you in advance.