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

Yes.

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.

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.

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.

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.

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.

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.

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.

You could file for bankruptcy to get rid of the debt owed to the finance company.

Yes it is legal to file bankruptcy.