QUESTION

Can I file for bankruptcy on a car that was crashed with no insurance?

Asked on Jun 19th, 2011 on Bankruptcy - Georgia
More details to this question:
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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8 ANSWERS

Bankruptcy Attorney serving Beverly Hills, CA
2 Awards
Yes.
Answered on Jul 14th, 2011 at 12:14 PM

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Personal Injury Attorney serving Stratford, CT
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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.
Answered on Jun 28th, 2011 at 9:27 AM

Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals

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Bankruptcy Attorney serving Herndon, VA at Maureen O'Malley
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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.
Answered on Jun 22nd, 2011 at 9:28 AM

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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.
Answered on Jun 21st, 2011 at 2:36 PM

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Spencer Hale
Yes it is legal to file bankruptcy.
Answered on Jun 21st, 2011 at 12:18 PM

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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.
Answered on Jun 21st, 2011 at 11:36 AM

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Bankruptcy Attorney serving Seattle, WA at Symmes Law Group, PLLC
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You may file bankruptcy on car crash debt so long as the debt was not incurred due to criminal activity.
Answered on Jun 21st, 2011 at 9:59 AM

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Glen Edward Ashman
Possibly, but bear in mind you also may go to jail, be fined and lose your license for no insurance.
Answered on Jun 21st, 2011 at 9:06 AM

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