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-   -   Bankruptcy and fema money (https://www.askmehelpdesk.com/showthread.php?t=249814)

  • Aug 17, 2008, 09:11 AM
    slvrtrixter
    Bankruptcy and fema money
    I never got to sell my house and pay off credit cards. My house was destroyed by flooding. With no flood insurance my damages are more than house, I still owe the mortgage and have decided to file bankruptcy. Fema mailed me a check for $11,000 for house repairs when they knew the house wasn't going to be fixed. I sure need rent assistance. Can I cash this after bankruptcy and pay rent? Do I tell my lawyer?
  • Aug 17, 2008, 09:18 AM
    JudyKayTee
    Quote:

    Originally Posted by slvrtrixter
    I never got to sell my house and pay off credit cards. My house was destroyed by flooding. With no flood insurance my damages are more than house, I still owe the mortgage and have decided to file bankruptcy. Fema mailed me a check for $11,000 for house repairs when they knew the house wasn't going to be fixed. I sure need rent assistance. Can I cash this after bankruptcy and pay rent? Do I tell my lawyer?


    NEVER lie to your Attorney, particularly about your assets when you file in bankruptcy.

    I don't know what FEMA knew or didn't know but if the check was for damage repairs and you use it for another purpose you can be criminally charged.
  • Aug 17, 2008, 12:18 PM
    Fr_Chuck
    If you have a check for 11,000 it has to be included as part of the list of your money on hand. You are allowed a certain amount of property and so on. Or of course you can just prepay your current rent for 6 months or so if you want to spend down part of that money.

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