Question @ home/car insurance & BK

[Ortgeist]

Hello all. I am writing since my appointment with my lawyer was cancelled yesterday (we were supposed to sign). I asked the paralegal if we could include my home/car insurance in the Ch 13 BK since we are a month behind. She said "yes". They have my last insurance policy statement.
My question is, is she right? Is it possible to include one month of an insurance premium in a Ch 13?
I just read about how the trustee asked someone at their 341 meeting if they had homeowners insurance. Does it mean that you have to be current on it? We want to keep our home and have included one car in our BK. We don't have alot of disposable income & we live in Missouri.
If anyone can answer this question, thanks in advance!!!

Carrie

[HHM]

I haven't heard of people including past due insurance premiums in a chapter 13, and it may not be advisable to do so anyway. Strictly speaking, the insurance premium is not an extension of credit. Your insurance premium is a pre-payment for insurance benefits. In that respect, insurance is like a lease, when you pay rent on the 1st of the month (i.e. June 1), you are paying for the privilege of living in that apartment from June 1-30). Likewise with insurance, when you pay your auto insurance on June 1, you are paying for auto insurance coverage from June 1-30. This does not mean you "can't" include those payments in the chapter 13.

I'd probably advise you to make-up those payments, if you can, before you file your Chapter 13. Even if you include the missed payments in your chapter 13 plan, that will not prevent the insurance company from cancelling your policy if they choose to.

[Ortgeist]

I've called my insurance agent to see if we can work out a payment plan that would include the dues for May spread out over the length of my policy. So I'm waiting to hear from him.
Thank you for replying. I don't get alot of explanations from my lawyer. And this will be the 2nd time he's rescheduled on us. We wanted to file this Wednesday and get it over. It is just going on and on. And considering we are going through a family crisis too, it just makes the process that much more strenuous.

Thanks again,
Carrie

[CindyLou]

I would do everything possible to keep your insurance out of your bk and stay in good standing. Its not easy to get new insurance! Hopefully the can work with you.