Deductible Reimbursement - Is it mine?

[CCCrazy]

I filed Chapt. 7 on March 9. I received my $500 reimbursement check for my deductible from a car wreck I was in on Dec. 18. Is it mine? Can I go cash it? Or should I deposit it in my bank and spend it with my debit card? Does it matter? Any advice is appreciated - I want this BK to go as smoothly as possible.

[JoeBankrupt33]

I would be wary of spending it just yet. When were you entitled to receive it? Did you list this amount as an asset on your petition? If so, did you exempt it?

[CCCrazy]

I was always entitled to the deductible reimbursement - it just depended on when my insurance co. got it back thru subrogation. It wasn't mentioned in my BK papers at all - I didn't even think of it. So if I take it to a Currency Exchange and cash it, is anyone going to be the wiser? I mean, I could also deposit it in my bank account and spend it on car repairs, groceries, etc., but I would like to spend it on fun things too - is Currency Exchange an option?

[AngelinaCatHub]

OK, this is easy but I’m not a lawyer. YOU PAID it in a deductable. It is INSURANCE! You just got reimbursed for expenses paid up front, not any kind of income. INSURANCE payment of any kind are exempt. To be safe, hold it for a while, ask your lawyer of course, and cash it for cash, purchase what is exempted for special assurance and keep your receipts. It is yours. ‘Hub