Can I still file chapter 7 if one of my cars has been wrecked and insurance won't cover it? 9 Answers as of December 14, 2015I want to file chapter 7, one of my car that has been wrecked still drivable and all it was a weather condition accident wrecked into side beams, insurance couldn't cover it due to it being in liability. Would I still be able to file bankruptcy with Chapter 7.
Ronald K. Nims LLC | Ronald K. Nims
Both your liability to anyone hurt in the accident and your liability on the car loan are discharged in bankruptcy. Unless you were driving drunk or high. Any fine from a court as punishment for violating a traffic law isn't dischargeable.
Answer Applies to: Ohio
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, you can do that. You can "surrender" the car and wait years and years for them to come pick it up, (which they probably will never do). Your problem will be trying to get rid of it later since you don't have a pink slip.
Answer Applies to: California
Rhymer Law Firm | William Rhymer
If you otherwise are eligible for a Chapter 7, you can still discharge the debt if the creditor does not object for failure to protect them with insurance. If you wait for the debt to go to a collection agency you greatly improve your chances the creditor will not object to the discharge.
Answer Applies to: Georgia
A Fresh Start | Dorothy G Bunce
You are welcome to file Chapter 7, but you will need to decide whether to surrender the car and owe nothing, reaffirm and pay full price, or redeem for fair market value. Any insurance proceeds due to property damage would likely go to the lender in the event of either surrender or redemption.
Answer Applies to: Nevada