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In a Chapter 13 for 2 years now -- 100% payment plan. Have 3 years to go. Can I keep check to get car fixed from accident

Elkhart, IN |

Husband was in accident in January. Was other drivers fault. Got insurance Check from other drivers insurance company for the damages. Are we ok to take check and go get car fixed or do we have to turn over to the trustee?

Attorney Answers 3


  1. You will probably be ok to use the funds to repair the car. However, you need to have your attorney check with Trustee Miller's office to be sure. Technically, these are assets of the estate. The Trustee may want your attorney to file a motion to use the proceeds formally with the court, or they may indicate that they have no objection to your use of the funds directly.

    Better safe than sorry. Have your attorney check with the Trustee.

    Attorney Jay Perez is a Managing Attorney with Macey Bankruptcy Law / Jacoby & Meyers-Bankruptcy, LLP, a national consumer bankruptcy law firm. His firm can be reached at 888-743-5787 or www.JacobyMeyersBankruptcy.com. Attorney Perez manages offices in Indianapolis, Merrillville, South Bend, Elkhart, Fort Wayne, and Lafayette Indiana. Attorney Perez is licensed to practice before the Supreme Court of Indiana, Federal District Court for the Northern District of Indiana, and the Federal District Court for the Southern District of Indiana. The private law firm of Macey Bankruptcy Law / Jacoby & Meyers-Bankruptcy, LLP is a debt relief agency helping people to file for bankruptcy relief under the bankruptcy code.


  2. I agree with Attorney Perez and since he practices where you live, he should know how this sort of issue is handled in your district.

    DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).


  3. I agree that you can probably use the money. In effect there is no impact on the ch 13 plan, The payment equals the damages. But I also agree that it is always better to shine a light on the situation and be pro active with the trustee. The Trustee should give your lawyer some guidance on how to document the situation. Sometimes, just an explanatory letter from your lawyer is enough. If the Trustee is going to give you a problem, better to know it up front. Good Luck.

    This response is intended to give a general overview of the law and should not be treated as legal advice. There are too many factual issues and exceptions in the law to provide definitive conclusions about your circumstances.

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