The rest of the insurance money is deposited in your account, I suppose. In that case, it would be considered as an asset.

My home suffered severe damages due to Hurricane Sandy. Thankfully I had insurance and after thorough inspection, the insurance company has coughed up a few thousand dollars. However, the repair works are in process and I still have around $7,000 left which I need to use for the remaining restorations. On the other hand, I am considering bankruptcy to get rid of my outstanding credit card bills. What I wanted to know is that if I successfully file BK7, can the trustee claim the rest of the insurance money?

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The rest of the insurance money is deposited in your account, I suppose. In that case, it would be considered as an asset. How long will it take to complete the restoration? I recommend you file your bankruptcy after that only. Otherwise the trustee may claim on the amount as cash asset. The bankruptcy exemptions will be applicable though.


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