What to do if I’m in a Chapter 13 and had a car accident in which my vehicle was totaled but the trustee got the balance after what we owed?

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What to do if I’m in a Chapter 13 and had a car accident in which my vehicle was totaled but the trustee got the balance after what we owed?

She is still sitting with the $12,000.00 on my account, What happens to that money when I am discharged? I am in my 56th month of the plan. Also, right now there is enough to pay off the 13 with $7200 left over but I am only paying at 28%.

Asked on October 2, 2013 under Bankruptcy Law, Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Based upon what you have written about, it seems as though the trustee is holding the insurance money to pay off the lender for the car that was totalled assuming that you owed money on the car. I suggest that you speak with the trustee personally as to why the insurance proceeds are being held.


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