Auto Insurance Claims: Claim proceeeds and Bankruptcy, hail damage, leasing company

Question
Who Gets the Money?
If a policyholder was paid on a hail damage claim on a leased vehicle, with a lender named as co-insured, but he does not fix the car, then files bankruptcy and surrenders car back to the dealer. Where does the claim check go? The asset was clearly declared in the bankruptcy and the lenders attorney did not ask the trustee for it.  

Answer
Hi Daniel,

Based on the scenario you laid out, the check should be turned over to the leasing company. The reason the check was made out to both parties is to protect the value of the leinholders asset. If the repairs were not completed, then the lienholder get the money to complete the repairs.

I hope this helps
Richard Hixenbaugh