Hurricane Victims & Bankruptcy

[Minnymouth]

It has been brought to my attention thru several postings that victims of the hurricanes that have filed bankruptcy has run into many problems.

The trustees in most of these cases have seized all assets available too them (meaning - no land or property available - only cash assets)......

If victims were paid for their assets they lost (homes, furniture etc.) the trustees are seizing these funds.... to pay the creditors.

Since the victims have no actual assets to seize, trustee's are seizing all cash available to the victims to satisfy their debts.

Has anyone else experienced this?????

Are they seizing ALL insurance proceeds? Or just proceeds covering property that would have been exempt (which of course is not now exempt)....??

Also are they seizing all miscellaneous cash income that someone DONATES to help these victims..??

Good Questions...... wonder about the answers????

Since they are only allowed SO MUCH CASH - then the rest becomes an asset to them.....

If this is the case, any finanicial help these folks receive will be turned over too the Trustee's......

I hope this is not the case..... I would hate to think donations made by private individuals to HELP VICTIMS get back on their feet WOULD GO TO THE TRUSTEE.......

Most of these victims had to file chapter 7's - because they had nothing left............

Any thoughts on this folks???? Any suggestions for these victims????

P.S. Remi2001 had posted a thread concerning the above.... now they are also after their tax refunds too.....

[Genenco]

Any Advice I'd give, Regarding what the disaster victims should do, would go against the rules of this forum...

If this be true, I would ask them to contact their local TV stations and SCREAM MURDER!!!!! This cannot be legal and shouldn't ever be allowed!!

SCREAM ***** COMPLAIN>>>MAKE NOISE!!!!!!!!!!!!

[StaciMM]

My thought - for anyone who hasn't filed yet is to put off filing as long as possible, and try to get everything finalized regarding getting into a permanent residence again, finishing with insurance, etc.

[FoolAndHisMoney]

My thought - for anyone who hasn't filed yet is to put off filing as long as possible, and try to get everything finalized regarding getting into a permanent residence again, finishing with insurance, etc.

You took the words right out of my mouth. I feel that since it was a disaster area and creditors can't possibly take action against so many people it seems that waiting until after the rebuilding process is over would make more sense.

[StaciMM]

In reality, anyone in an unstable financial situation is probably better off waiting for the waters to calm.

[bkfiler]

id ask several atorneys in the area and see what they are doing about this. maybe it will change and if so they would know about it.

[Genenco]

You took the words right out of my mouth. I feel that since it was a disaster area and creditors can't possibly take action against so many people it seems that waiting until after the rebuilding process is over would make more sense.

Kind of hard waiting when you house was just BULLDOZED!!!!!!!!!!

I just saw a report (Yes, FOX News)that homes that had not even been checked by insurance companies or by the city or state, were being destroyed without ANY permission!!

More details to come, I'm still web searching about this, but if this is slightly true..Man, that's just not right!!!

Note: web site http://www.katrinaaction.org/

[Minnymouth]

FAIR WARNING,

Was on the evening news last night that anyone that left a home in the hurricane area, is not going to rebuild, or make arrangements to rebuild, after a certain time span the govt. will consider it "abandoned" and the city/county can conficate the land..... HOW'S THAT FOR A KICK IN THE A***????? Also they can confiscate the land under the new laws concerning city/county "improvements".

Just another way for the govt. to take their land without paying for it..................