Legal Question in Bankruptcy in North Carolina

Re: chapter 7 bankruptcy

When you say "included" in the bankruptcy, I take it to mean that you listed it as an asset, listed the mortgage company and exempted any equity you have in it. You make no mention of reaffirmation. Your relationship to your insurance carrier and lender is returned to the same status as before the bankruptcy except that the mortgage company could not sue you or make claim for any deficiency following a foreclosure. Since you repaired the home, I assume that you are staying in it and are making the payments. If you are current, then the mortgage company has no right or interest in contacting State Farm. You hold the policy and you make any claim. In the event of settlement with State Farm, it should be paid to you. State Farm should also have put the mortgage company on the settlement check. If you did not make claim and you abandoned the home to the lender, then they have a right to make a claim on your policy. If the proceeds are larger than the payoff, you are entitled to the surplus as well as the home. You should consult a lawyer and give him/her more detail to allow the matter to be straightened out.