Legal Question in Bankruptcy in Texas

Bankruptcy and Automobile Insurance Claim

If a vehicle that is protected under chapter 13, the 1st trustee payment having already been made, is upside-down in the note that it is securing, was the cause of an accident that insurance wants to total out, can the lien holder take possession of that vehicle and prevent debtor from retaining vehicle? There are many more details that may or may not influence the answer, but that's the situation, simply put.


Asked on 12/06/03, 12:01 pm

2 Answers from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Bankruptcy and Automobile Insurance Claim

If you filed your own Chapter 13, it is probably best to talk to the Bankruptcy Trustee (the Trustee making your scheduled payments) about this. Everything you do will need to have approval anyway, but your question raises many issues that cannot be answered in a simple way. Best of luck.

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Answered on 12/08/03, 4:43 pm
Rush Wells Ratliff & Wells

Re: Bankruptcy and Automobile Insurance Claim

Talk to your bankruptcy lawyer. That is why you hired him / her.

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Answered on 12/06/03, 2:08 pm


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