Hi Brett

About to get an insurance check payble to me and the autobody shop
$5,500.

The total repairs are about $6,000 (car is worth 10k owe 18k), I am
letting the car go back.

If I file bk 7 after I get the check and before any repairs, who gets
the check?

Does it go to the other unsecured creditors, autobody shop, or
leinholder?

Thanks.

It depends on the details, what state you live in, the trustee involved and
what exemptions you have available to you. I can't give an answer with the
information in your post.

And if the check is payable jointly to you and the body shop, you won't see
the money anyway.

--

Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@brettweiss.com *
* http://www.brettweiss.com *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

"Gus" <gus_shult_2000@hotmail.com> wrote in message
news:9117a4e6.0401110851.4d8197a3@posting.google.c om... Hi Brett About to get an insurance check payble to me and the autobody shop $5,500. The total repairs are about $6,000 (car is worth 10k owe 18k), I am letting the car go back. If I file bk 7 after I get the check and before any repairs, who gets the check? Does it go to the other unsecured creditors, autobody shop, or leinholder? Thanks.

If it could be exempted, does that change anything? I live in TX with
out a house, and was planning on using the Federal Exemptions.

Also, if its payable to me and the bodyshop, do I have a 50% interest
in the check?

Sure--if it can be exempted, it's yours.

You do not have a 50% interest in a joint check such as this. Check with
your attorney or the insurance company to find out what your policy provides
and whether you can obtain the funds without having the car repaired.

--

Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@brettweiss.com *
* http://www.brettweiss.com *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

"Gus" <gus_shult_2000@hotmail.com> wrote in message
news:9117a4e6.0401121004.7e14c6da@posting.google.c om... If it could be exempted, does that change anything? I live in TX with out a house, and was planning on using the Federal Exemptions. Also, if its payable to me and the bodyshop, do I have a 50% interest in the check?

Thanks Brett

Just talked to the shop, they said they don't care. Fix or no Fix,
they will sign the check (I have to pay storage fees and tow) but
otherwise the cash can be mine.

Will Ford be screaming Foul?

Impossible to say.

--

Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@brettweiss.com *
* http://www.brettweiss.com *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

"Gus" <gus_shult_2000@hotmail.com> wrote in message
news:9117a4e6.0401141805.23696145@posting.google.c om... Thanks Brett Just talked to the shop, they said they don't care. Fix or no Fix, they will sign the check (I have to pay storage fees and tow) but otherwise the cash can be mine. Will Ford be screaming Foul?

My attorney is getting cold feet, at first he was "like sure you can
exempt it."

Now he is saying the check is subsitute collatoral and Ford has a lein
on the check.

If they do have a lein on the check can it be stripped (unprefected).

Thanks

Perhaps. This is an area where local practice rules to an extent.

--

Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@brettweiss.com *
* http://www.brettweiss.com *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

"Gus" <gus_shult_2000@hotmail.com> wrote in message
news:9117a4e6.0401180628.779bbbdc@posting.google.c om... My attorney is getting cold feet, at first he was "like sure you can exempt it." Now he is saying the check is subsitute collatoral and Ford has a lein on the check. If they do have a lein on the check can it be stripped (unprefected). Thanks

Doesn't this fall under UCC 9, secured transaction or am I missing
something?

In Maryland, do you think you would be able to exempt this (assuming
this is the only asset and you use the federal exemptions)? If so,
under what basis?

I have done a little research and this issue mainly comes up in BK 13
cases. Every case I've read the lien holder gets it up to the secured
value assigned in the BK 13 plan. The times the lien holder get mad is
if there was a cram-down and the insurance check is more. Then the
debtor gets the rest, but only after the completion of the BK 13 plan.


§ 9-306. "Proceeds"; Secured Party's Rights on Disposition of
Collateral.
(1) "Proceeds" includes whatever is received upon the sale, exchange,
collection or other disposition of collateral or proceeds. Insurance
payable by reason of loss or damage to the collateral is proceeds,
except to the extent that it is payable to a person other than a party
to the security agreement. Money, checks, deposit accounts, and the
like are "cash proceeds". All other proceeds are "non-cash proceeds".

Maryland doesn't allow the federal exemptions, and has a special law that
doesn't require perfection for certain liens under $10,000, so it's a bad
example. I'd need to research the issue to give you a firm answer.

--

Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@brettweiss.com *
* http://www.brettweiss.com *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

"Gus" <gus_shult_2000@hotmail.com> wrote in message
news:9117a4e6.0401191542.29263f44@posting.google.c om... Doesn't this fall under UCC 9, secured transaction or am I missing something? In Maryland, do you think you would be able to exempt this (assuming this is the only asset and you use the federal exemptions)? If so, under what basis? I have done a little research and this issue mainly comes up in BK 13 cases. Every case I've read the lien holder gets it up to the secured value assigned in the BK 13 plan. The times the lien holder get mad is if there was a cram-down and the insurance check is more. Then the debtor gets the rest, but only after the completion of the BK 13 plan. § 9-306. "Proceeds"; Secured Party's Rights on Disposition of Collateral. (1) "Proceeds" includes whatever is received upon the sale, exchange, collection or other disposition of collateral or proceeds. Insurance payable by reason of loss or damage to the collateral is proceeds, except to the extent that it is payable to a person other than a party to the security agreement. Money, checks, deposit accounts, and the like are "cash proceeds". All other proceeds are "non-cash proceeds".

Hi Brett,

Follow-up, I just checked the retail installment contract and oldly
enough the vin is wrong (one digit off).

Does this help my case to avoid the lien on the insurance check (if
there is fact a lien on the check)?

Thanks,

Gus

Probably not. There isn't any real dispute about which car was insured, and
which car the check is for, is there?

--

Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@brettweiss.com *
* http://www.brettweiss.com *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

"Gus" <gus_shult_2000@hotmail.com> wrote in message
news:9117a4e6.0401271535.3d9017e0@posting.google.c om... Hi Brett, Follow-up, I just checked the retail installment contract and oldly enough the vin is wrong (one digit off). Does this help my case to avoid the lien on the insurance check (if there is fact a lien on the check)? Thanks, Gus

Thanks for your follow-up

I know I'm grabbing at straws, but do you think the below would
matter.

Bought the truck in FL on 11/15/02 moved to GA 1/26/03 (started new
job 1/27/03), the lien was registered in FL 1/27/03.

Also, I haven't registered the car in GA, and just last month I signed
a payment extension (skip-a-payment during the holiday).

Should they be filing the UCC-9 in GA?