Car accident after 341

[andie5087]

I'm new here and had a quick question...

My BK was filed on May 29, 2013 and I had my 341 hearing on 07/08/2013 and I was then in a car accident on 07/17/2013. My vehicle was totaled by the insurance company and there is no lien on the vehicle.

My question is this: Am I going to be able to use the proceeds from the insurance company to purchase a new vehicle or will the proceeds be considered part of the estate? The accident was well after the bankruptcy was filed. I am terrified that I am going to be stuck without a car and without money to purchase a new one.

[spidge]

You likely included the value and exemption so you will likely be OK. The only one who can answer it accurately is your attorney. Don't hesitate to make the call.

We file a 13 and two months in my wife totalled our van. We just used the insurance proceeds to buy another vehicle. There was no exemption change to make.

[Pizza]

It happened after filing, so I don't see how it could be considered income nor an asset in relation to your Chapter 7. Now had it happened before filing and you were holding onto a check you didn't claim on your papers, that would be a different story.

[btbeme]

You have the proper paperwork (police report, insurance claim, etc) showing the date of the incident, right? And that date is post-filing, right?

Just checking.

If it is all kosher, there should not be a problem, unless the insurance claim is for more than the value of the car as you listed it (probably exempted it) in your filing. If you claimed and exempted, say, $3000 in value and the insurance pays that much or less, you would be OK. But if the insurance pays out $5000, you could have an issue.

Make sure your attorney knows the details, including the insurance payout. And don't cash the check until the attorney approves.

[stevie2012]

Same scenario in my case. Pizza is right on the money (I consulted my attorney).