Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hi, my name is ***** ***** I look forward to helping you, please give me a moment to review and possibly research answers to your question.
That's an interesting question actually. You are definitely not liable on the debt for the vehicle but since the accident happened post-petition you could have to use the money to fix the vehicle. I will have to do some research on this one. Please be patient. Thank you.
haha ok, I suspect that will be the result. That they could but will not come after you. But let me see if I can find some case law on it.
Hi, sorry, no I did not find any case law. I have concluded that is because this is not a bankruptcy law question. We know since you did not reaffirm, you are not liable for the debt secured by the car and it is discharged in the BK.
Also, since the accident happened post-petition, any money received from it is not property of the estate.
The only issues then is between you and the insurance company. I am actually surprised that the repair shop wasn't paid directly or the check was not joint-issued to you and your insurance company., Your loan agreement with the bank might say that any insurance paid for repairs must be applied to the vehicle and so then you would be in breach of that loan agreement.
I would not say there is any fraud issue unless the check was issued to you and the bank and you cashed it anyway without their signature.
So this guys back to my initial thought that probably they are entitled to it but won't do anything about it. Did they get the car yet and have you heard from them? Thanks for your patience.