Can I file for bankruptcy on a car that was crashed with no insurance? 19 Answers as of July 14, 2011

I 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?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
Yes.
Answer Applies to: California
Replied: 7/14/2011
Rosenberg & Press
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
Replied: 6/28/2011
Cartwright Law Firm
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
Replied: 6/22/2011
The Law Office of Mark J. Markus
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
Replied: 6/22/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
To be eligible for filing, you need to pass the means test. Contact a local attorney and they will be able to advise you more specifically regarding your jurisdiction.
Answer Applies to: Washington
Replied: 6/22/2011
    Law Office of Maureen O' Malley
    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
    Replied: 6/22/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, you can file for bankruptcy. Hopefully there were no drugs or alcohol involved in the accident. That could be a complication if someone was hurt.
    Answer Applies to: California
    Replied: 6/22/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    If there is a deficiency for an automobile this can be discharged in bankruptcy. If this is the only debt you may want to make an agreement rather than file bankruptcy.
    Answer Applies to: California
    Replied: 6/21/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You could file for bankruptcy to get rid of the debt owed to the finance company.
    Answer Applies to: California
    Replied: 6/21/2011
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    Yes it is legal to file bankruptcy.
    Answer Applies to: Arizona
    Replied: 6/21/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    No. It is not illegal to file bankruptcy on this type of debt. The bankruptcy will completely wipe it out.
    Answer Applies to: California
    Replied: 6/21/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    You may be able to file for Bankruptcy but you will need to speak with an attorney to determine what makes the most sense.
    Answer Applies to: New Hampshire
    Replied: 6/21/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    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
    Replied: 6/21/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Yes, unless the creditor can show that you were supposed to have insurance and was driving the vehicle knowing you had no insurance and can seek to have the debt kept form being discharged.
    Answer Applies to: California
    Replied: 6/21/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    You may file bankruptcy on car crash debt so long as the debt was not incurred due to criminal activity.
    Answer Applies to: Washington
    Replied: 6/21/2011
    Law Offices of Virginia E. Fortunato
    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
    Replied: 6/21/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Possibly, but bear in mind you also may go to jail, be fined and lose your license for no insurance.
    Answer Applies to: Georgia
    Replied: 6/21/2011
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