QUESTION
Would filing bankruptcy get rid of the debt I owe from being involved in a car accident while uninsured?
Asked on Oct 22nd, 2016 on Bankruptcy - Oregon
More details to this question:
The accident happened in 2013. I have been making payments monthly since the other party’s insurance company contacted me. Originally, they said I owed something in the ballpark of $8,000, but a year later they changed it and added an additional $10,000. My spouse and I both work minimum wage jobs and have been late on a few payments, so they have contacted my state’s DMV and got my license suspended twice. It is currently suspended and my states law says that after a second default on a payment agreement like this, my license will stay suspended until my debt is paid off! I still owe upwards of $13,000!! I am the only one in my household that drives and this is causing day to day hardship in my life. I can't get my kids to and from school or doctor’s appointments or myself to and from work. It will take me years to pay off this debt as it is. Will bankruptcy help?
7 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Bankruptcy will eliminate the debt and get your license reinstated. All you'll have to pay is the reinstatement fees.
Answered on Nov 30th, 2016 at 4:29 PM
I have filed numerous bankruptcies with similar issues, and never had a problem. If the debt arises from drunk driving, that is a problem. Otherwise, filing BK should discharge the debt and allow you to get your driver's license back.
Answered on Nov 22nd, 2016 at 4:26 AM
You are describing a very common reason why someone who has been otherwise responsible with credit might need to file bankruptcy. Often DMV will reinstate your license immediately after receiving notice that you filed bankruptcy. To facilitate this moving forward ASAP, be sure to retain an attorney with experience with this specific issue.
Answered on Nov 18th, 2016 at 5:27 PM
1 Award
Yes, as long as there was not an injury caused by the use of Alcohol then this debt can be eliminated in a bankruptcy. After the bankruptcy is over, your attorney will need to file some additional paperwork in the county court where the insurance company sued you.
Answered on Nov 18th, 2016 at 5:27 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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It all depends on whether or not the accident involved drugs or alcohol. Those can not be discharged, while if that is not the circumstance, they may be able to be discharged. As the question did not include those relevant factors, I can not advise any other way except to state contact a bankruptcy attorney in your jurisdiction.
Answered on Nov 18th, 2016 at 5:27 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Assuming that drugs or alcohol are not involved, it should be dischargeable.
Answered on Nov 18th, 2016 at 5:27 PM
Yes, if you file bankruptcy that will rid you of that debt, as long as drugs or alcohol were not involved in the accident.
Answered on Nov 18th, 2016 at 5:26 PM