Tap to Call - (877) 250-8242

Car Accident Claims in Bankruptcy

Many people considering bankruptcy to eliminate their debt wonder how the court handles car accident claims in bankruptcy. The matter depends on the specific circumstances of an individual's car accident claims and on the type of bankruptcy a person files.

If you are planning to enter bankruptcy with car accident claims, you may want to speak with a lawyer to learn about your rights and your options in court. To connect with a lawyer near you for a free case evaluation, simply fill out this form.

What Happens to Car Accident Claims in Bankruptcy?

Here's a look at the various circumstances that might determine how the court handles car accident claims in bankruptcy.

  • Non-dischargeable car accident claims: In Chapter 7 bankruptcy, the court can forgive a filer’s eligible unsecured debt. Car accident claims are unsecured, but if they result from a DUI (that is, if the claim occurred after an incident in which the filer was driving under the influence), they may not be dischargeable. The U.S. Bankruptcy Code explicitly forbids the discharge of debts associated with DUI violations.
  • Accident claims covered by insurance: If the car accident claims were not related to a DUI incident, the bankruptcy filer’s auto insurance may cover them. In this case, it is unlikely that the claims would play a role in bankruptcy court.
  • Car accident claims in Chapter 13 bankruptcy: Money owed as part of a car accident claim may be included in a Chapter 13 repayment plan.

Car Accident Claims You Collect in Bankruptcy

The other side of this issue is when the bankruptcy filer has collected or will collect money from a car accident claim before or during a bankruptcy case. In these cases, the money collected may be considered part of the bankruptcy estate, meaning that creditors may have access to the funds as part of their debt compensation.

And those who had their vehicle replaced as part of a car accident claim may also have to report it in a specific way to the bankruptcy court.

Get the Facts about Your Car Accident Claims in Bankruptcy

If you’d like to learn more about how car accident claims in bankruptcy may affect your filing, you can speak with a bankruptcy lawyer practicing near you.

Go


Tap to Call - (877) 250-8242

PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.

FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.

If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.

By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.