Hi everyone, I filed Chapter 7 yesterday and have a question about insurance proceeds. I lost everything in a house fire on Christmas last year and my insurance company gave me most of what I'm supposed to get (the depreciation value?). Now in order to get the rest, I have to buy brand new items to replace what I lost and send the receipts to the insurance company to get reimbursed for the replacement value. I haven't been able to afford to do that before filing. My question is, if I can finally afford to replace things in a month or 2 will the trustee get the insurance money from the new items? I'm a no asset case.
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Filed Chapter 7 - 6/4/2009
341 Meeting - 7/14/2009 -
This is tough. If it were personal insurance such as an annuity proceed, or life insurance it cannot be touched. That being said, insurance is made to "make you whole" in a property loss. The insurance actually belongs to the house. If you spend this on anything but restoration of what you have lost, I am confident you will be quizzed.
Are you represented by council? On our forum only legal advice from a lawyer is legal and only opinions and experiences (as well as some encouragement) is delegated here.
I believe you will be fine for restoration of what was your house, or one like it up to but not over the amount you accepted from the insurance company settlement. This is my belief. I think you will be fine. Keep all records from any household purchases, and if you replace something like TV, make it equal to but not super LCD wall sized, etc. 'Hub
Add-on, purchase what you wish up to the amount maxed. It appears you are already a no asset case as to what you stated. Lamp at a time as you can, and in my own opinion, if you were able to get a personal loan from a parent for this specific purpose to "up-front" your items, and let the insurance check to directly to them, this you may get by on. However, I cannot say it enough, check with your new lawyer.If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010. -
Ok thanks! I will ask. It was renters insurance so it only covered my personal property.Filed Chapter 7 - 6/4/2009
341 Meeting - 7/14/2009Comment
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