I have an insurance check for a hail damage claim on my car. They made the check out to me and the lien holder which is include in my bk. Do I need to contact the lien holder so they can endorse the check to the body shop doing repairs? I'm just wondering what to do- the lien holder is a local bank and they were not very happy when they were included in the bk. They even went as far as closing my checking/savings account. Should I contact the trustee?
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That's typical with Homeowner's insurance claims. The insurance company issues a joint check to the Homeowner and the Lender. You have to forward the check to the Lender for them to endorse, they send it back to you, and then you can deposit/cash the check for the repairs to your house. But I've never heard of this with an auto policy on a car. How odd!
This could be tricky. 'Cause if the Bank get's their hands on the check, you may never see the funds. They've already closed your bank accts.
Were the funds accounted for/disclosed and exempted in your BK? If not, the Trustee could also lay claim to the funds as well.
Could be a catch 22 here any way you go at it.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
the bk was filed over a year ago- the insurance claim was last month. I really think either the trustee or the bank would try to keep the check if I go to either one. I think I will just take my car to a body shop that deals directly with my insurance company and have them issue payment directly to them.Comment
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