Can I file for bankruptcy on a car that was crashed with no insurance? 19 Answers as of July 14, 2011I am wondering if I can file for bankruptcy if I am in a bit of debt and just had a car accident with a car that I still owe $10,000 on. Unfortunately my insurance had lapsed. Now I have $7000 in repairs and no car. Is it legal for me to file bankruptcy?
Rosenberg & Press | Max L. Rosenberg
In the State of Connecticut, a firm known as Rosenberg & Press, actually made case law regarding this very issue. Yes it is legal for you to file bankruptcy. In the case that my partner and I worked on, the bank brought an adversary proceeding in bankruptcy court under 11 USC 523(a)(6) in an attempt to survive the bankruptcy. They attempted to claim that getting into a car accident without insurance was a willful and malicious tort. (Soucy v. Wyscoki, 139 Conn. 622 (1953). Of course this is absurd, because who willfully gets into an accident?! The deciding case is Kawaahau v. Geiger, 523 U.S. 57, 118 S. Ct. 974, 140 L.Ed.2d 90 (1998) which held that both the act and the injury allegedly inflicted by Defendant upon a Plaintiff must be intentional to be considered willful. This is the standard the majority of bankruptcy courts have adopted. In this case your deficiency on the car is therefore dischargeable in bankruptcy. My case was GMAC v. Jackson in case you wish to know more on this matter.
Answer Applies to: Connecticut
Cartwright Law Firm | Andrea Cartwight
I would need more facts to determine whether you qualify for a Chapter 7 Bankruptcy. However, if the accident was due to normal negligence, then yes you can file for bankruptcy against that debt. Most debts can be discharged in bankruptcy with the exception of most student loans, taxes, spousal support, child support, fines & restitution and fraud. As long as there were no alcohol or drugs were involved in the accident then that debt can be wiped out. If you should have any further questions or concerns regarding bankruptcy, please feel free to give us a call. We offer free consulations, low fees and EZ Payment Plans. For more information, please visit our website.
Answer Applies to: Michigan
The Law Office of Mark J. Markus | Mark Markus
If you're asking whether or not the debt owed on your vehicle can be discharged in a bankruptcy case, the answer is yes. As to whether it is "legal" to file bankruptcy, if you are eligible under a particular chapter, then it is legal.
Answer Applies to: California
Law Office of Maureen O' Malley | Maureen O'Malley
You are required to keep insurance on a car that has a lien. After the accident, the lender could have been paid from that. I don't know whether they'd object to discharging that debt under these circumstances.
Answer Applies to: Virginia
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
You need to seek the advice of a bankruptcy attorney to see if you are "eligible" and if so, what would work best for you.
Answer Applies to: Indiana
Law Offices of Virginia E. Fortunato | Virginia E. Fortunato
Yes, it is possible to file for bankruptcy and include the balance you owe on the vehicle as a debt. In fact, you must list all of your creditors when you file bankruptcy. This is not an uncommon situation.
Answer Applies to: New Jersey