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My question is about 9/11 victims compensation awards.
Anonymous9 views2 answers
I know that 401k plans are exempt from debt collection efforts, but I need to know with absolute certainty as to whether or not 9/11 VCF award money-Whether it be for economic and or non-economic, that these funds are exempt from any type of debt collection efforts, even if I would need to file a bankruptcy to obtain that exemption and protection of any 9/11 award I might be entitled to...The attorney who can answer this question with absolute certainty, will win my business when it comes time for me to file for a bankruptcy, as that clock is ticking down.
Have you tried to contact the Victim Compensation fund? The fund's website is linked below. They also provide numbers for you to call. 1-855-885-1555 (or 1-855-885-1558 for the hearing impaired). Staff is available 8 to 5pm. You can speak to a representative and also ask to speak to the legal department or in-house lawyer if available. You want to see if the funds are exempt from the reach of creditors both inside or out of bankruptcy. Are your funds kept in a segregated account? Were they put into a special account, like a trust account? Who is the trustee? Are you allowed to take out the funds when you want? Do you have documentation relating to the deposit of such funds? Are the funds solely for you or your loved ones as well? The facts are really unknown. Do try to call the fund first. Best of luck, Barbie D. Lieber
Exemptions are controlled by state laws, and if your state legislature has failed to enact protection for these funds, the bankruptcy court cannot look the other way and say that it okay for you to keep this money. A general description of these laws in all 50 states is at the link below. It wouldn't hurt for you to contact your elected officials in Albany to complain about the need to change the laws, if needed. Hope this perspective helps!
