Office of the Ch. 13 Trustee Insurance Claim PoliciesInformation for Debtor Attorneys:Please note the following:
1. If your client has an issue regarding the settlement of a cause of action and the possible payoff of a vehicle that is currently being paid through the Chapter 13 plan, please follow through in representing your client in this matter, as required by Local Rule SC LBR 9010-1 (d).
2. If the claim for the vehicle is paid in full, please have the lien holder send us documentation in writing, so that we do not overpay the lienholder. We cannot guarantee title if funds are paid through this office, nor can we make special disbursements not authorized through the plan. Please be sure to explain this adequately to the insurance company so that they do not mistakenly send funds to us for a payoff. Any funds received will be presumed to be funds in excess of the payoff, and applied and paid pursuant to the plan terms.
3. As you should be aware, the bankruptcy code does permit the reduction of the base plan to the extent that a claim is paid outside the plan, but that relief would need to be requested, by the filing of an amended plan and motion to modify which specifies the reason for the change, and an amended budget showing the debtor’s current circumstances. The plan base is not automatically reduced. If you intend to file an amended plan, please do so as soon as possible, to avoid over-disbursements by this office. The Trustee will not request reimbursement for any disbursements he has made on reliance of this policy.
4. The Trustee may consent to the debtor keeping proceeds in excess of the payoff, if he is notified of the amount, and if the amount is less than the exemption. A request must be submitted to the Trustee's Office Manager, Daryl Nobles, at nobles@charleston13.com for any proposed use of funds.
|
Send mail to powers@charleston13.com with questions or comments
about this web site.
|