Insurance while in Bankruptcy
I have previously talked about the importance of having insurance while in bankruptcy. I encountered a situation yesterday, in which the importance of insurance became tangible. One of my Debtors called and said that her car had been reposed. I thought it was for payments, because we were trying to get this worked out. The trustee confirmed her plan on the wrong plan, so the car creditor was receiving the wrong amount and had just then decided to tell us about it. After consulting the attorney for the car creditor, she informed me that it was for insurance. The Debtor worked on providing me insurance and she also had to have someone else listed on the insurance card as well. At 4:30p.m. I finally got the proof of insurance, and to my disbelief, the date on the insurance was that date. I call the insurance company to find out if there was a lapse, which there was. At that point my hands were tied. I was unable to do anything. The reason her car was reposed was because she was under an agreed order. She didn’t hold up her end of the deal, so they took her car. That is why it is so important that you have insurance and why you follow the agreements you make with the creditors.
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