If you’ve filed for a Chapter 7 and your car gets totaledfor whichyou receive money from your insurer, mustI give it tomy Trustee?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If you’ve filed for a Chapter 7 and your car gets totaledfor whichyou receive money from your insurer, mustI give it tomy Trustee?
I had a car that was paid off. I filed for Chapter 7 then got in a wreck and it was totaled. I recieved money and need to buy another car. Can I do that or does all of the money I got paid have to go to the trustee?
Asked on November 4, 2010 under Bankruptcy Law, Florida
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
The best person to ask this of is your trustee as you have an obligation to disclose any funds received in a payout. Itcould be considered as money available to creditors. Your entitlement to the car would only have been up to a certain amount under your exemptions as indicated in the law in your state. If the car was worth 10 times the exemption it could have - presumably - been sold to pay off your debt. So you need to advise the trustee and ask to set aside a certain amount of money to purchase a used car perhaps or as a down payment on a new car (but then you have the bankruptcy issue with the loan). Get some advise in your area. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.