Expert: Terry Leeders - 4/28/2009

Question
a house that i owe that waa not listed on the bankruptcy burned down. the cause was undetermined. after the insurance pays off the loan i will have about $20,000 left over. what will the bankruptcy court do?

Answer
You need to amend your schedules.
List the Home on A.  List the Debt on D.  List any exemption you might be entitled to on C.  Send the amendments to the trustee.
Since you did not list it, you must amend, otherwise this is bankruptcy fraud (failure to disclose assets/debts).
Depending on the value of the home, and the exemption amount you may be entitled to, you might be able to keep the proceeds, but only if disclosed.   IF the court finds out that you failed to disclose this, then you risk a denial/revocation of your discharge, and possibly federal criminal charges for bankruptcy fraud.  Get with your lawyer immediately, so that they can take the actions necessary to help you.