Insurance Check - Claim before filing

[pcrum12]

Hi,

I'm new to the forum and pose this question:

We had wind damage to our home prior to filing our Ch 13.

We have now received insurance check to repair damage.

Home is being surrendered.

Do we cash check and have contractor start repair?

Thanks

[justbroke]

This is an extremely interesting scenario. When you filed your Chapter 13, did you list this insurance "settlement" in your Schedules?

I would ask my lawyer this question. If this is a Chapter 13 and you keep the proceeds of the insurance, then that could be considered income and part of the Estate.

How much are you paying back your unsecured creditors?

What State are you in? (I'm assuming SouthEast to southern midwest.)

[pcrum12]

we told atty amount and that we were waiting on ck before we filed. Filed 10/8 - received ck 10/18. Mortgage co is not on the check - also they are holding recoverable deprec - Since home is surrendered but im still maintaiing insurance at this point and claim filed prior to filing im responsible for the repair. The insurance check will not cover cost of repair so I need to recoup the recoverable deprec after repair is done. Any further thoughts? I'm in Ohio. And, we have yet to attend first meeting with creditors. Court hearing is not until 12/2

[pcrum12]

and of course having trouble getting atty to call me back on this question --- contractor was expecting to start today

[justbroke]

Yeah, I would just hold on to the check and ask your lawyer. You may be able to just surrender (endorse) the check to the Bank and be done with it. I don't want to see you out the "recoverable depreciation" or even $0.01 for that matter.

[pcrum12]

My thought was that the roof needs repaired or further damage. If I don't repair it I'm sure the bank won't and then if sold - sale would not cover bal due. I'm really not sure how that works

[pcrum12]

next question: If the bank sells property while in Ch 13 - does that show as pd or is it that since I surrendered home the bank carries the loss?

[justbroke]

next question: If the bank sells property while in Ch 13 - does that show as pd or is it that since I surrendered home the bank carries the loss?

Shows as IIB (Included In Bankruptcy). It should have a $0.00 balance.

[justbroke]

My thought was that the roof needs repaired or further damage. If I don't repair it I'm sure the bank won't and then if sold - sale would not cover bal due. I'm really not sure how that works

If it's that bad, then I'd try to get it repaired for the face value of the check. Maybe the contractor will still want the work and do it for the face value and to collect the rest later.

I'd hate to see you suffer. If the difference isn't significant and you can swing it, then go ahead.

I'd still try to talk with my lawyer. If you can't reach him... show up at his office!