My house caught fire today

[familyof7]

My house caught fire today and the kitchen was destroyed the rest of the house our belongings were damaged by smoke will the trustee interfere with the insurance company paying for damages? What effect will it have on my bk case do I even have to call and tell the trustee? we should discharge 7-21-07

[chpxiii]

How awful! I'm so sorry this happened to you. I'm glad you and your family are ok. No advice, just sending well wishes.

[familyof7]

Thank you yes it is a pain we have 5 kids and no money so we are stuck

[familyof7]

I am going in circles if anyone can shed light please do so thanks lol

[freshstart06]

my goodness, I feel so bad for you guys, at least no one was hurt.

[ProSefromCA]

familyof7, I'm so glad you and everyone is okay! You are one of the ones that has given me so much help. I'm really glad that you had insurance covered!

From my understanding you are just fine. You don't need to call the trustee at all. The DAY you file your paperwork a bankruptcy estate is created for what you have up to that day. That's all the trustee can control in terms of distribution to the creditors. Any income you get AFTER the day you file is yours. The worst that could happen is under the new law for BK abuse the trustee would determine that you can afford to make payments and pressure you into Chpt. 13. But that's only with a significant rise in income.

[lrprn]

My house caught fire today and the kitchen was destroyed the rest of the house our belongings were damaged by smoke will the trustee interfere with the insurance company paying for damages? What effect will it have on my bk case do I even have to call and tell the trustee? we should discharge 7-21-07

First, thank god all of you are ok!

Since you filed pro se, unfortunately there's no bk lawyer familiar with your case to ask what to do in this situation. I tried a search here and online to see if I could come up with a prior bk case where a home fire wasn't deliberately set and happened while the case was active, but I can't find one .

Hopefully another member may have had an experience similar to yours and will be able to give you a direction to take. I'm so sorry this terrible fire has happened to you and your loved ones.

[familyof7]

Can they take the insurance proceeds? I am scared because if they do we will truly be screwed we will have truly lost our kitchen and all opf our belongings we can not afford to have them restored the smoke got on everything we own not to mention we will have a house with no kitchen

[familyof7]

I was just scared because I know they want to know of insurance settlements inheritances lotto winnings that you get 180 after filing i just wasnt clear on if it is only things that cam up before filing and received after or if it was thing you got period no matter when you became intittled to it if this makes any sense

[lrprn]

Any income you get AFTER the day you file is yours.

This is not correct, ProSe. Windfalls, inheritances, money coming from lawsuit judgments - all can be taken by the trustee if they occur within six months of filing Ch 7. That's why Familyof7 is nervous. Will the trustee see the insurance payout as a sum of cash he/she can take to pay off creditors? That's why a real legal opinion from an experienced bk lawyer in Fof7's area would be very valuable in this situation.

[ProSefromCA]

Actually lrprn, it IS correct if you believe the Nolo.com book is reliable. I'll quote you the related section...

-----------------------------
SECTION - Certain Property Aquired Within 180 Days After You File

Most property you acquire--or become entitled to acquire--after you file for bankruptcy isn't included in your bankruptcy estate. But there are exceptions. If you acquire (or become entitled to acquire) certain items within 180 days after you file, you must report them to the bankruptcy court--and the bankruptcy trustee may take them. (11 U.S.C s 541(a)(5).)
The 180-day rule applies to:
- property you inherit during the 180-day period (some courts have held that property that passes to you as a beneficiary of a revocable living trust is not part of your bankruptcy estate; see, for example, In re Mattern, 55 Collier Bankr. Cas. 2d 1677 (D. Kan.2006) and In re Roth, 289 B.R. 161 (D. Kan. 2003).)

- property (not including alimony) from a property settlement agreement or divorce decree that goes into effect during the 180-day period, and

- death benefits or life insurance policy proceeds that become owed to you during the 180-day period.

You must report these items on a supplemental form, even if your bankruptcy case is over.
------------------------------------------------

Like I said, regular income and things like fire insurance are not mentioned, and do not become part of the estate the trustee has control over.

[poorme]

The insurance settlement is intended to make Fo7 'whole' again, and replace the items lost from the event. That said, in the trustees eyes, they should be no better off than they were 15 minutes before the fire. This isn't like a windfall, gain from a divorce, etc. where the filer is now better off financially.

[demismom]

I really don't see HOW the trustee could in good faith take that money. Oh My God - that would be awful. Would he/she REALLY expect you to live in a burned out house? I doubt it, can you call the Trustee and ask? That's really the only solution I can see.

[ProSefromCA]

This isn't like a windfall, gain from a divorce, etc. where the filer is now better off financially.

Actually, if you read what I listed above you see that only 3 specific things fit the 6 month rule, and windfalls are not mentioned. In fact, I did a search and found a guy that won the Mega Million lottery the day his trustee filed the 'report of no distribution'. The court didn't do anything.

Here is the link:

http://www.cbsnews.com/stories/2004/11/22/national/main657133.shtml

[JRScott]

I am sorry to hear of your misfortune. I am glad that you and yours are well.

You'll need the insurance just to bring you back to where you were before the fire .

I don't have much experience with this I hope and pray that all turns out well.

My advice pray about it and see what the Lord wants you to do .