So long as that money is for bodily injury and is compensatory, it is safe. In other words, if she had made the mistake of signing a settlement agreement saying that they were punitive damages, then they could be taken by the bk trustee. However, that is rare. Almost everyone settles for compensatory damages to compensate you for some kind of injury.
I can safely list the $25,000 in her bankruptcy and then exempt (protect) it from creditors and from the trustee.
Here is the Utah Code Section that thankfully put her mind at ease:
78B-5-505. Property exempt from execution.
(a) An individual is entitled to exemption of the following property:
(x) proceeds of insurance, a judgment, or a settlement, or other rights accruing as a result of bodily injury of the individual or of the wrongful death or bodily injury of another individual of whom the individual was or is a dependent to the extent that those proceeds are compensatory;