Filed 2 years ago ~ was in wreck this past week

[Gigi1999]

My husband and I filed for Ch. 13 in December 2008. Friday, I was broadsided by a man in a big truck after he ran a red light. It totaled my van (which is wrapped up in the bk). I have a couple of questions (my lawyers are being slow at calling me back).

Firstly ~ what happens during a Motion to substitute collateral? The lawyer had told me that we could possibly buy something else and hand the title over to the people who hold the tital to my van. Do we get the check and go pick it out and give it to them?

Secondly ~ my pain and suffering/medical allowance check, should I get one, do I have to give it straight to the trustee??

Thanks for your help!
Gigi

[Lissy]

I had the same thing happen to me 3 weeks after I filed last year. I wasn't confirmed yet though; I hadn't even had my 341! I can't really answer the first question, as my car was not being paid through the plan, I was making the payments directly. My totaled car was worth more than I owed on it, so my insurance company sent the payoff directly to the lender and I got the rest. I did have to get permission from my TT to use that money for a down payment on a new car, but it wasn't a problem.

For the second question, it will depend. It's best to speak to your lawyer. In my case, I did get a settlement from the other driver's insurance company. But, my insurance company only covered 80% of my medical bills; the other 20% was to be paid by the other insurance company and rather than wait for the bills, they included that amount in my settlement. So then it became my responsibility to settle up on the bills. Plus, I lost a lot of personal property in the wreck (GPS unit, prescription sunglasses, CDs, etc.). So almost all of the money I received was either for medical bills or to replace lost property. The remainder was for my "pain and suffering" but it wasn't that much money. My TT was not interested in taking it. As always, your mileage may vary.

[ValleYum]

Wow, I hope you are feeling okay!! Personally, I would suggest that you wait a bit on any injury $ and make sure you are feeling okay several weeks after the accident. Sometimes neck and back injuries are subtle and once you sign off, it would really suck to not be able to be compensated for your true injuries.

Another hint: If the other party's insurance gives you a check for your car MAKE SURE to read the back of the check before you sign as they may try to have you release them of all liability for both your car and personal injury.

The member BrokeinMD suggested to another poster with a similar issue: Above your signature, you write on the property damage check, "Property Damage Only - Not a Release of Claims" and sign underneath. You do that even if your insurance company gives you the check.

Take care and I hope everything works out well for you!!

[Gigi1999]

Thanks! I am ok ~ my lower and upper back are really achy and my neck hurts. But that is to be expected, right? I went to the chiropractor Friday within a few hours of the accident and then again today ~ went to my regular physician yesterday. I am very nervous about not having anything to drive when it is all said and done :/ Just because the guy ran the redlight. I am terrified of being screwed over in the whole deal.

[BrokeinMD]

Gigi - You need to speak to a personal injury attorney. Most of them will take cases on a contingency, meaning, you won't pay a dime until your case is settled. If you have medical issues, definitely consult with one, explain you're in a 13, and have Lawyer talk to Lawyer. I'm not in a 13, so I don't know the ins and outs of that, but I'm pretty good with dealing with the insurance companies, as I've done a lot of that for a living, and yes, the other guy's insurance will try to screw you if you don't fill out the forms correctly. Don't ever let the guy that hit you know the dollar amount of your meds to date. It could cause a big mess. PM me, and I can help you through it.

[Lissy]

Be careful with suing! I mean, if you need to in order to cover lots of medical expenses due to a chronic injury you sustained, by all means. But don't do it just to get money for "pain and suffering." You most likely would have to surrender that money to the Trustee.

In my case, since my accident happened before I even had my 341, it came up at the 341 meeting. The TT representative asked if I was planning to sue and I said no. He made sure I knew that if I changed my mind, any money over and above medical expenses I was awarded would not be mine, it would go to the Trustee. That could have been because I was not yet confirmed, but from the research I did at the time, I don't think it matters. They can still take the money if they want and you would be obligated to report it to them.

My advice is to sit tight for awhile on the legal stuff and work on getting yourself a new car. The other driver's insurance company will probably try to get you to settle on the medical as soon as possible. Don't fall for it! Make sure you are OK physically before you agree to anything. I waited about 4 months. They called me periodically and I told the woman the first time I wasn't settling until I knew how much my hospital visit was going to cost and whether I was going to need any further medical treatment. When she called after that, I just told her I hadn't received any bills yet. She didn't push me. Contrary to popular belief, the insurance companies are not trying to screw you, they're just trying to limit their liability. They are a business after all. Just use your head and look out for your own best interests and you'll be fine. Don't get greedy and see $ signs because in a CH 13, you likely won't get to keep it anyway.

Oh and FYI - if you go get a lawyer, the insurance company will no longer be able to speak to you directly. They'll have to go through your lawyer. If your injuries are minor, there is no reason to get a lawyer involved. But all of this is premature - you need to focus on your health and wait it out to make sure you don't have injuries that haven't presented themselves yet.

[Flamingo]

Thanks! I am ok ~ my lower and upper back are really achy and my neck hurts. But that is to be expected, right? I went to the chiropractor Friday within a few hours of the accident and then again today ~ went to my regular physician yesterday. I am very nervous about not having anything to drive when it is all said and done :/ Just because the guy ran the redlight. I am terrified of being screwed over in the whole deal.

Since you were injured get yourself a Personal Injury lawyer and don't sign anything until you talk to an attorney. Inform your Bk attorney of the situation and that you were injured and your attorney will handle the car situation for you as to your Plan and advise you what to do. Best of luck to you.

[Gigi1999]

Thanks, guys. Here is what I have learned today:

1. We are getting $9,026 for the van...however, the money is in limbo until March 3 when my BK attorney goes to a hearing to do a Motion to Substitute Collateral. 2 things could come out of this: a) We get the money to buy a new vehicle and then give the title to the car's finance company to hold until our bk is over or b) they pay the balance of the car off and we get the left over $1k to buy a car.

2. Any medical reimbursement and/or pain and suffering I will be able to keep unless it is a rediculous amount. I highly doubt it will be. I don't have intentions on suing, but if they hand me a check for pain and suffering, I WILL accept it. My neck and head have not stopped hurting since the accident and I never had issues before. I mean, I have had some lower back stuff in the past, but this is all upper.

I have been so stressed. Now I am stuck w/out a car (they are taking the rental back on the 31st) until the hearing at least. And, if I only get $1k, what kind of vehicle can I get? I have 3 kids...a small car won't work. It sucks that everything was hunky dory in my little world until a man runs a red light and screws it up :/ It sucks. Not to mention, even they pay off the car loan with in the loan, we still have to continue paying our monthly payment until our bk is over. Unless I am not understanding this correctly?

[RunningMan]

I don't have intentions on suing, but if they hand me a check for pain and suffering, I WILL accept it.

Good for you, I think people are too quick to sue. I know people will disagree with me, but that is what drives insurance costs through the roof. If the loan is paid off, I don't understand why you think you would continue to make the car payment. If the car payment is included in the trustee payment, can't you have your attorney petition to ammend the plan to lower your payment and allow you to get a new loan. Other people on this board have done that.

[Gigi1999]

Will they adjust my payment after paying off the car loan that is wrapped up in the BK? Currently, my payment is nearly $340 of what I am paying a mo. to my trustee. It was my understanding that they would redistribute the money from Honda into whoever else is wrapped up in our bk.

[Freddy03]

Thanks! I am ok ~ my lower and upper back are really achy and my neck hurts. But that is to be expected, right? I went to the chiropractor Friday within a few hours of the accident and then again today ~ went to my regular physician yesterday. I am very nervous about not having anything to drive when it is all said and done :/ Just because the guy ran the redlight. I am terrified of being screwed over in the whole deal.

You probably should have seen your regular physician first. Sometimes a chiropractor can do more harm than good especially since it was just a few hours after the accident. Did the chiropractor adjust you right after the accident?

Hope you feel better soon. Accidents suck - been there!

Good Luck!

[BrokeinMD]

Talk to your BK attorney now that you may have to endure an additional financial hardship. Flamingo's advice is dead-on. PI attorneys can protect you and give you guidance. Most of the times, from my own personal experience working with them, the cases don't get filed for suit at onset, as treatment, property damage settlements, etc., take a while to discover. Unless your savvy with insurance companies and how they operate, it's best to have a PI attorney involved for your own protection. And yes, you can get screwed by the insurance companies. Even by your own company who you pay premiums to who you think would cover you in situations like this.

[Gigi1999]

You probably should have seen your regular physician first. Sometimes a chiropractor can do more harm than good especially since it was just a few hours after the accident. Did the chiropractor adjust you right after the accident?

Hope you feel better soon. Accidents suck - been there!

Good Luck!

Yes, I went in to see my chiro about 7 hours after the accident. I am not a big fan of the general medical practice and would rather try to do things w/out drugs and such. But, when it didn't help after 2 adjustments, I went to see my regular physician. I am going to an ortho on Monday because I can't get the headache to go away

[Lissy]

2. Any medical reimbursement and/or pain and suffering I will be able to keep unless it is a rediculous amount. I highly doubt it will be. I don't have intentions on suing, but if they hand me a check for pain and suffering, I WILL accept it.

Absolutely, you should! It probably won't be a ton of money. I was actually surprised at how little I was offered. I mean, it was fair, but I just thought they would be really worried about me suing and try to sweeten the pot, so to speak, to keep that from happening. My accident was a rollover. The other driver hit me broadside on the passenger side and my car rolled onto its roof. My insurance company was great and so was the other insurance company. They never disputed the fact that it was their insured's fault and they agreed to pay for everything from the beginning. Like I said, the other insurance company did try to get me to settle quickly. They called me 4 days after the accident and offered me money. I just told them no way, I don't even know what my medical bills are yet. They left me alone for awhile after that, probably a month or so before they called again.

I hope you feel better soon! And don't worry about the car. I know how it is, I was stressed too. Mainly because my credit was in the crapper since I'd just filed 3 weeks prior to my accident. But it all worked out. My TT approved my request for a new car loan and let me use the insurance money for a down payment. If you are 2 years in, you might be in a better position credit-wise. Good luck!

[Gigi1999]

Can you actually finance a car during a chapter 13? I didn't think you could? I am learning lots of new stuff here lately, though. We just passed the 2 year mark but according to 13datacenter, we have paid half of the base already. What happens if you reach the base early?