More details to this question:
We filed chapter 7 BK, in 2012, It was discharged in 3/13. There were no assets to administer to our creditors, at the time we had no equity in our house. We had 2 vehicles which our attorney did NOT re-affirm. We have been paying the monthly amount due on them, so as to keep them. 6 weeks ago, one of the vehicles was totaled. We have been told by our insurance company that the settlement amount is $11,000. There is still a $2000 "balance" on the loan, and the other $9,000, to our understanding is equity, that we should receive to put toward the purchase of another car. The attorney that handled our case said it's a done deal, we don't need anything from the BK trustee, but our insurance company is insisting that they cannot release ANY funds till the trustee "signs off" on it. Can anybody provide any guidance or insight into this for us? I thought we were discharged and closed. We have been receiving our tax refunds. Are we due ANY money back? all? None? Thanks!
6 ANSWERS
Your attorney is correct.
Answered on Sep 03rd, 2015 at 1:19 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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If the car loan was secured, then the secured creditor is entitled to the proceeds, up to the balance due on the underlying debt. I think it's a waste of time to demand accord from the Trustee, but it most likely will not hurt. The increase in your equity, presumably due to your making regular payments, should belong to you, and not to any creditor or the BR Trustee. Consult your BR lawyer who can review the many facts and details which can make a difference. Good Luck.
Answered on Sep 02nd, 2015 at 5:49 PM
There are just some times where you cannot fix stupid. Getting the trustee to sign off may not be any big deal.
Answered on Sep 02nd, 2015 at 10:26 AM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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Send the insurance company a copy of your discharge order and the proof that the case was closed (available on Pacer). The bankruptcy case is closed. You have moved on - the balance needs to be paid off to the lender, and the remainder of the funds are yours to replace the vehicle or whatever you choose. There may be a trustee's abandonment of interest in the vehicles due to exemption and appropriate security interest.
Answered on Sep 02nd, 2015 at 9:53 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The insurance company is entitled to receive the $2,000 balance of the loan because they have a lien on the car. The bankruptcy trustee ceased to have an interest in the matter when the case was closed. You need to have an attorney contact the insurance company.
Answered on Sep 02nd, 2015 at 4:46 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Assuming your case was closed, your attorney is correct. Let him deal with the insurance company.
Answered on Sep 01st, 2015 at 8:23 PM