How to handle totaled vehicle (owned free & clear)

[trigabyte1]

Sorry to post so much of my misery on here, but maybe this can help someone else.

I was in a car accident earlier this week and the insurance company decided to total the car.

There's good news and bad news:

1. The car was owned free and clear and was already exempted under 11USC522(d)2 for the full amount (originally expected to be about $5000 - its a joint case so exemption was doubled).

2. Insurance company wants to settle for about $4000 more than KBB or NADA suggested as fair market value. (Thank you!) This brings the settlement up to about $8500 after deductible.

This brings up a couple of issues:

1. As this property was part of the bankruptcy estate, I cannot liquidate without approval of the court. Would I need to make a motion to the court to allow the transfer or simply contact the TT to get his OK?

2. I would expect I would amend my personal property and exemptions to reflect the insurance payout. I have plenty of unused homestead to apply to cover this payout. (I've only tapped about $2500 thus far. I have about $18,000 left after doubling due to joint filing.)

Does this seem logical? Or am I way off base? Thanks in advance.

[justbroke]

I would amend the schedule and include the insurance proceeds. When did you file?

[trigabyte1]

Mid April. 341 is next week.

[tigergem]

If your 341 is coming up that soon, you might want to wait to amend the schedules. But mention it at your 341 when the question comes up about changes to your circumstances. The reason I say this, I had to amend my schedules right after my 341 due to some nit picky stuff the trustee brought up at the 341. So I'm thinking just to avoid confusion and duplication of effort and possible fees, maybe wait and see if there is anything else that has to be amended.