QUESTION
What happens to an Insurance check for storm damage?
Asked on Sep 26th, 2012 on Bankruptcy - Michigan
More details to this question:
The house was heavily damaged by a tornado on March 2, 2012 and may need to be torn down. I received a letter of GMAC Chapter 11 in May. The insurance check is made out to GMAC Mortgage and us. We are being told that we cannot access the money from the check because it will go into the chapter 11 "pool". What really happens to this check? How can we access these insurance funds, or will we just never receive this money to repair our home? How long will it take to access it?
3 ANSWERS
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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Usually it has to be used to pay for the repairs.
Answered on Jun 12th, 2013 at 1:20 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Now is the time to hire an attorney in your area. You will not be able to get self help type answers on the internet, but must get an attorney on this. Time is wasting.
Answered on Sep 27th, 2012 at 2:32 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I do not understand your question. Are you in bankruptcy. If GMAC has a secured interest they will be the loss payee on the claim to the amount of the mortgage balance of the residence is not repaired or rebuilt. If you are in bankruptcy, any excess over the mortgage balance will be placed into your bankrupt estate for distribution to your creditors.
Answered on Sep 27th, 2012 at 12:58 PM