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    Curiosity question

    As I was sitting in the basement waiting out a bad thunderstorm, a thought came to me. What would happen to our bankruptcy if our house and or our out-buildings blew away or were damanged in a storm? We all know that a windfall of money like an inheritence would go into the bankruptcy estate up to 180 days from the date of filing. At present we are discharged and closed and about 30 days from reaching the 180 day goal. Our acerage is paid for and was totally exempt here in Iowa.

    What if a storm did $50,000 damage to home and outbuilding...would that money from our insurance go to the trustee? Would we be left with a house with no roof and no money for repairs? With the million or so people that file bankruptcy each year a situation like this would have had to come up somewhere. Any thoughts!

    #2
    I don't think it would have any effect on the BK.
    Since it would be an insurance payout regarding something that happened after you filed and is not related to a death or lottery, I don't see how it's related.
    Just my opinion of course.
    Chapter 7 No Asset
    Filed January 2010
    341 February 2010
    Discharged April 2010

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      #3
      Originally posted by sawdust14 View Post
      As I was sitting in the basement waiting out a bad thunderstorm, a thought came to me. What would happen to our bankruptcy if our house and or our out-buildings blew away or were damanged in a storm? We all know that a windfall of money like an inheritence would go into the bankruptcy estate up to 180 days from the date of filing. At present we are discharged and closed and about 30 days from reaching the 180 day goal. Our acerage is paid for and was totally exempt here in Iowa.

      What if a storm did $50,000 damage to home and outbuilding...would that money from our insurance go to the trustee? Would we be left with a house with no roof and no money for repairs? With the million or so people that file bankruptcy each year a situation like this would have had to come up somewhere. Any thoughts!
      The insurance company most likely will make the check out to you AND your lender. This is usually exempt from Trustees. Your lender will make you prove you used the money for proper repairs.

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