bonkers101
Member
Texas -
Background - civil case - 92 plaintiffs, defendants filed bankruptcy, case settled in bankruptcy court chapter 11.
Just got letter today with settlement amount to be paid out in 6 payments one in April one in September for three years. Note from attorney says
"Our expenses may be deducted from the first payment"
They are charging 33 % of the final payout for each plaintiff, so payments divided by 6 don't even cover what attorney's fees are! Can they take our full payments until they are paid? that would have most of us not receiving any compensation until the third or fourth payment, so another year and a half or so!
Have left word with attorney but don't expect to hear from them any time soon as I usually don't.
Also - any idea on taxes on such a settlement? Is it taxed prior to attorney's fees or after fees are taken out? Each payment or payment as a whole over the three years?
Thanks for any info!
Background - civil case - 92 plaintiffs, defendants filed bankruptcy, case settled in bankruptcy court chapter 11.
Just got letter today with settlement amount to be paid out in 6 payments one in April one in September for three years. Note from attorney says
"Our expenses may be deducted from the first payment"
They are charging 33 % of the final payout for each plaintiff, so payments divided by 6 don't even cover what attorney's fees are! Can they take our full payments until they are paid? that would have most of us not receiving any compensation until the third or fourth payment, so another year and a half or so!
Have left word with attorney but don't expect to hear from them any time soon as I usually don't.
Also - any idea on taxes on such a settlement? Is it taxed prior to attorney's fees or after fees are taken out? Each payment or payment as a whole over the three years?
Thanks for any info!