What will happen if my house burns during bankruptcy? 11 Answers as of July 11, 2013

If my home was destoyed in a fire while I am in bankrupty, how will this situation get handle?

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Law Offices of John J. Ferry, Jr.
Law Offices of John J. Ferry, Jr. | John J. Ferry, Jr.
If this is something that has happened, talk to your attorney as soon as possible. If this is something you are planning on, be prepared to spend a long, long time in jail for arson. The less flippant answer is that it depends on the situation and whether or not there is insurance coverage in place.
Answer Applies to: Pennsylvania
Replied: 6/22/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Well that depends on a number of factors, and what you mean by "handled". Was there insurance on the home? Did you cause the fire? Do you want to keep the property? Are you current with the mortgage payments? What chapter of bankruptcy was filed?
Answer Applies to: California
Replied: 7/11/2013
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
The fire insurance proceeds remain your assets for the court to disburse.
Answer Applies to: California
Replied: 6/20/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
It will depend on many individual factors. For example, did you have equity in your home and was the equity exempt? Has the Trustee abandoned your home? Have you reaffirmed the debt? Please speak with your Bankruptcy Attorney to determine what steps need to be taken.
Answer Applies to: New Hampshire
Replied: 6/20/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
I assume there was insurance on it; the mortgage company will get the proceeds for the property and can still repossess the land. I hope you also had insurance on its contents if you were still living there.
Answer Applies to: Virginia
Replied: 6/20/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If Chapter 7 then it will not affect the bankruptcy case if the trustee has already abandoned the estate. That usually happens shortly after the meeting of creditors. If the estate has not yet abandoned then the trustee must be notified because technically everything belongs to the estate and you have no power or right to settle the insurance claim. If a Chapter 13 then you need to consult with your attorney because it is more complex situation, particularly if the plan has not been confirmed yet. If you have no attorney, which is foolish, then you must contact the Chapter 13 Trustee.
    Answer Applies to: California
    Replied: 6/20/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    When you own a house you need to have a fire insurance policy for the benefit of the lender. If your policy lapses the lender will get notice and put a policy in effect to protect themselves.
    Answer Applies to: California
    Replied: 6/20/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    Your property insurance carrier should be notified.
    Answer Applies to: California
    Replied: 6/20/2011
    Hanson & Hanson
    Hanson & Hanson | Anna C. Hanson
    When you file bankruptcy, you list the assets you own as of the date of filing. Your home would be listed as an exempt asset in your bankruptcy, because Oklahoma state law allows you to keep any equity you have in your home in a bankruptcy. If the house was to be destroyed in a fire after you filed, you would keep any insurance proceeds because the home was exempt.
    Answer Applies to: Oklahoma
    Replied: 6/20/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    My guess is insurance comes into play.
    Answer Applies to: California
    Replied: 6/20/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    That depends on whether there was insurance on the home.
    Answer Applies to: Georgia
    Replied: 6/20/2011
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