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Insurance settlement Personal Bankruptcy

Discussion in 'Bankruptcy Law' started by Betsy K, May 5, 2017.

  1. Betsy K

    Betsy K Law Topic Starter Guest

    Hi, I plan to file bankruptcy to dismiss credit card debt of 60k as I am on disability with 2k income a month. I have a personal property insurance claim that may pay 30k. I just sold my home and will use the 200k to buy a mobile home in CA. I have 175k homestead exemption.
    In order to finish the insurance claim I need to spend 40 hours to complete my documents. But I think that it will be a waste of time because bankruptcy exemptions won't allow me to keep this money. Am I correct to drop the claim?
    Thank you, Betsy
  2. army judge

    army judge Super Moderator

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    I suggest you speak with two or three California LICENSED bankruptcy attorney near you.

    Your situation is far too complicated to say yes or no without asking more questions, and doing research.

    See or call those attorneys today, or ASAP.

    Don't rely on anonymous internet information to make IMPORTANT decisions.

    In addition, the sale of your home could also cause you difficulty, depending on how long before the BK you sold the home.
  3. adjusterjack

    adjusterjack Super Moderator

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    Betsy, talk to a bankruptcy attorney before you make any decisions that might get you trouble.

    It's possible that you might not qualify for Chapter 7 which leaves you with Chapter 13 where you get to pay your debts over a 3 to 5 year period, perhaps in discounted amounts.

    You might want to consider using the $200,000 that you realize from the sale of your home to pay the $60,000 in credit card debts and then buy a much lower cost mobile home, saving some cash to put aside, while getting your personal property claim paid.
  4. txls

    txls Well-Known Member

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    I agree with Adjusterjack. If you have $200,000 you should pay your credit card debt.

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