Hurricane Sandy has been the cause of much anguish on Long Island. It has also been the primary cause of many Chapter 7 Long Island bankruptcy cases. Unfortunately despite the many problems of the storm, there is no consensus as to whether a claim for insurance monies to repair a house constitutes an asset in Chapter 7.
If you have received monies from your insurance company or FEMA for the purpose of repairing storm damage this could lead to problems if you are contemplating filing for bankruptcy. You of course don’t want to lose that money to a bankruptcy trustee when you file bankruptcy. You need to carefully plan the case before filing it with a Chapter 7 Long Island attorney who will analyze your vulnerablity as to this claim.
Most Long Island Chapter 7 lawyers would advise you that your best and safest bet would be to have the repairs done as quickly as possible before filing in Chapter 7 and to get receipts and/or document all the work that has been done.
Some argue that insurance claims based upon property damage should be treated as part of the homestead exemption and not like cash. But why risk it when you have the chance of losing it in your Chapter 7 bankruptcy if it is in excess of other allowable exemptions? Many Chapter 7 Long Island attorneys are careful when it comes to these claims and try to ensure that the case goes to a sympthetic trustee or alternatively explore Chapter 13 if Chapter 7 is too risky.
Please call Long Island Chapter 7 attorney, Ronald D. Weiss 631-271-3737 for a free consultaion as to how to deal with Hurricane Sandy Claims in a bankruptcy case.