Legal Question in Bankruptcy in California

Re: Bankrupted Lienholder and wrecked trailer

The lienholder, in a Chapter 7 bankruptcy, transferred all of its assets to a "bankruptcy estate." That estate is administered by the Trustee assigned to the case. The insurance company needs to forward that payout to the trustee. I would not suggest that you attempt to keep it as the Trustee will eventually want either the trailer, in good condition, or the money back from you when you stop paying the loan.

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