How does this mess things up??

[browneyes]

We had to file a homeowner's claim when water ruined one floor of our house recently. Everything was replaced and we are finishing up our claim for replacement of personal property.

How is this going to affect my Chapter 7 case? We haven't filed yet. Do I have to include the proceeds on the project, or just those I personally received? If I am replacing personal property, am I exempt under my exemptions? AArrggghhh. Thanks for any help.

[JRScott]

I assume its just restoring the condition of the home and replacing lost/damage items, so long as those were already included in your previous calculations nothing should change.

[Billssuck]

We had a similiar situation. During Hurricane Ike last September we had severe roof damage. We filed a homeowner's claim and they totalled the roof. Since then, we have had the roof replaced (about $12K cost) and the homeowner's insurance paid for it all in addition to some interior damage to a room. I'm hoping too that this won't cause a problem because that $12K sat in my bank account for about 3 months while we were on a waiting list with a local roofer to have our project complete.

[HHM]

It shouldn't cause a problem.

[Pizza]

I also have a pending roof repair paid for by insurance (small world?) ... I'm just going to save the paperwork after it's paid for. Since the bank deposit and payment are for the same amount, it should be self-explanatory that this was not an "income".

[liz417]

I was wondering the same thing. I have put off filing a claim with my homeowner's insurance for some major water damage in fear of that $$ would be calculated in my income and/or the trustee taking the $$...

[kathy4530050]

I had a similar situation last summer--water damage too. I received 2 checks from my insurance company for a total of about $8,000. The majority of the money went to pay the contractors who replaced/refinished my ceilings and floors and repainted 2 rooms.

The first lawyer I consulted said that the money which came from the insurance company was income. I thought he was nuts. I consulted with several other attorneys and no one agreed with him. I am about to file now, so this incident no longer matters, but, if I were you and if you encounter anyone who says this is income--I would definitely get another opinion.