If you are in a bankruptcy chapter 13 case and are involved in a car accident, it is so important for you to follow the proper steps required by the Bankruptcy Court. It doesn’t matter if your vehicle was totaled or not, there are steps we must take to handle things properly.
Let the insurance company know you are in a chapter 13 bankruptcy and tell them any settlement for the damage to the vehicle must be paid to the chapter 13 trustee. Do not cash or deposit any settlement money or checks you receive. All money must be paid to the chapter 13 trustee.
If you hire an attorney to represent you for injuries you received in the accident, the attorney must be approved by the bankruptcy court. If you need a lawyer to represent you, call my office, I can refer you to an attorney.