Car Insurance Fails to Cover Expenses

When deemed at fault for a car accident, it’s up to your insurance policy to cover all the resulting damages, including car repairs, medical bills, and even lost wages. If you don’t have enough coverage, you’re most likely to pay the remaining balance. The resulting debt could wipe out your savings and leave you searching for a solution. If all that sounds far too familiar, you should know that bankruptcy could help.

Bankruptcy Can Help Make Up the Difference

Debt from a car accident could result in the loss of all your assets if you’re unable to pay the balance. In addition to your savings, you could lose your remaining vehicles and even your home. So, it would be best to act fast in finding a solution or risk losing it all.

Thankfully, bankruptcy is often a viable option when faced with damages from a car accident. As long as you can pass the means test, the unsecured debt will likely qualify for discharge through Chapter 7 bankruptcy. If not, you can explore Chapter 13 bankruptcy instead, which allows you to repay the balance over a set period.

Bankruptcy is only off the table if the accident occurred while driving under the influence or malicious circumstances. You would then have to handle the debt repayment yourself by setting up a payment plan or selling your assets.

How to Decide If You Can Benefit from Filing Bankruptcy

When you work with a bankruptcy attorney to discharge the car accident debt through court, you can potentially save your house and other assets. Despite that, it’s not the right choice for everyone.

To decide if you’re a good candidate for bankruptcy, you need to schedule a consultation appointment with an experienced attorney. They will look at the circumstances of the accident, the total debt balance, and your finances to help you find the best way forward.

During that consultation, you’ll get to chat about all the different types of bankruptcy. In addition, you’ll get a chance to explore the benefits and drawbacks of filing bankruptcy. Your attorney will also let you know what to expect through every stage of the process.

At that point, you have to weigh the pros and cons plus reflect on your ability to move through each step to decide if you’d like to file bankruptcy. If so, your attorney will let you know how to get started, so you can begin working toward the total discharge of your car accident debt.

Need Help Getting Started in Filing Bankruptcy?

If a car accident recently landed you deep in debt, look into your options with help from the SM Law Group. All you have to do is call 818-855-5950 to schedule a free consultation with our team. We’ll be happy to help you explore bankruptcy as a way to cover the damages from the car accident and start over with a clean slate. So, please don’t delay and risk losing your home. Give us a call today to find a way forward.