Insurance payment after Chapter 7 discharge

[Aldo1]

Hello,  I have searched around and I can not find my exact situation.   My car was parked in a parking lot during a snow storm and was hit by another vehicle.  I filed chapter 7 on this car Feb 12 2022, discharged 6-15-22.  I have filed a claim and received payment for the damage of 2758 dollars. I did not repair the car.  I had planned on surrendering this car just after tax time when I plan to get another car and have a better credit score and a decent down payment.  My question is when I surrender this car, will, or can they come after the 2700 dollars I received.  Just dont want anymore problems or debts to pay.  I have been told that after discharge I can keep the money and live with the damage if I choose, Ive also been told otherwise and that I have to pay it to the balance of the car.   Maybe I can get a solid answer on here. 

I should add it is Capital One Auto and I did not reaffirm on the loan.  Ive just been making the payments as usual.  I appreciate any help I get.  Thank you 

[DebtStinks]

Updated:

I see you responded with incident date and payout date (both of which are months AFTER discharge) so I think it's safe to say you're good to cash the check without any negative reprocussion, but won't hurt to advise your attorney.

I know this is not the answer you want from this forum, but IMO you 100% need to consult your attorney. Whether you can legally keep it or not, your attorney (and the courts as a result) need to be advised. Cover your bases and you shouldn't have anything come back to bite you in a butt later on.

Best of luck!

[sarge12]

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@Aldo1 wrote:

Hello,  I have searched around and I can not find my exact situation.   My car was parked in a parking lot during a snow storm and was hit by another vehicle.  I filed chapter 7 on this car Feb 12 2022, discharged 6-15-22.  I have filed a claim and received payment for the damage of 2758 dollars. I did not repair the car.  I had planned on surrendering this car just after tax time when I plan to get another car and have a better credit score and a decent down payment.  My question is when I surrender this car, will, or can they come after the 2700 dollars I received.  Just dont want anymore problems or debts to pay.  I have been told that after discharge I can keep the money and live with the damage if I choose, Ive also been told otherwise and that I have to pay it to the balance of the car.   Maybe I can get a solid answer on here. 

I should add it is Capital One Auto and I did not reaffirm on the loan.  Ive just been making the payments as usual.  I appreciate any help I get.  Thank you 

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I agree with the previous reply about consulting the attorney. It might be very dependant on when the car was damaged, and insurance payment made in relation to the bankruptcy filing and discharge. Generally, a non reaffirmed repo after bankruptcy discharge does not have any liability for any deficit incurred by the lender. It will not even show on your credit report as a repossession, if it was included in the bankruptcy papers. The lender could repo the vehicle, even if the payments are current, but I have never heard of one choosing to do so. They usually just hope and pray the debtor continues the payment. They do retain the title until paid in full, but if the car is worth less than owed, they will lose their money in a repo, which is why they rarely will repo it as long as payments are made. Some States or lenders might reqire a reaffirmation agreement for the filer to keep a vehicle, but it is generally not a good idea for the filer to reaffirm a car debt.

[Lyle5653]

IMHO, you need to contact your attorney immediately If the accident happened before you filed BK. You're supposed to put down any insurance claims,  or possible lawsuits you can file on your BK forms.

[Aldo1]

I have not spoke to my attorney since discharge. 

timeline as follows 

filed 2-28-22

Discharged 6-15-22

accident happened 11-21-22

payment received 12-2-22

[DogwoodLynx]

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@Aldo1 wrote:

I have not spoke to my attorney since discharge. 

timeline as follows 

filed 2-28-22

Discharged 6-15-22

accident happened 11-21-22

payment received 12-2-22

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I would contact the attorney that worked your case. 

I know when I did my 341 they had me swear under oath that if I came into any money (other than income sources) I would have to notify my attorney and trustee.