Aucto Accident. Bankruptcy?

[John123]

What is the name of your state? WA

Hello. I was recently in an auto accident without insurance. This looks like its going to cost quite a bit of money. The other insurance company is wanting a percentage of the accident but it is a lot of money. Maybe 10 to 15K (my part). There really isn't anyway I can afford this. If I file bankruptcy will it wipe this debt? Thanks.

 

[seniorjudge]

What is the name of your state? WA

Hello. I was recently in an auto accident without insurance. This looks like its going to cost quite a bit of money. The other insurance company is wanting a percentage of the accident but it is a lot of money. Maybe 10 to 15K (my part). There really isn't anyway I can afford this. If I file bankruptcy will it wipe this debt? Thanks.

What debt?

 

[John123]

Well "my part" of the damages which will include the other car (totalled), the repair of my car, and whatever medical expenses the other driver incurred and I suppose suffering or whatever else the insurance company comes up with.

 

[moburkes]

I think SJ is saying that it is not a "debt" yet.

 

[John123]

Understood, but what happens after the process is finished?

 

[bigun]

Actually, you can file and list it as a contingent/unliquidated liability.
Now, one thing you need to know is how Wa. hamdles driving without insurance. In a few states, that's a serious enough charge that the debt may not be discharged in bk. You need to see a Wa. bk lawyer and find out.
Also, what's the totality of your situation? If your income is over the median for your state, you may end up in a Chapter 13. What other debts do you have that can be discharged.

 

[Who's Liable?]

ALL debts must be included whether they are in good standing or not... OP cannot pick and choose....

 

[John123]

Actually, you can file and list it as a contingent/unliquidated liability.
Now, one thing you need to know is how Wa. hamdles driving without insurance. In a few states, that's a serious enough charge that the debt may not be discharged in bk. You need to see a Wa. bk lawyer and find out.
Also, what's the totality of your situation? If your income is over the median for your state, you may end up in a Chapter 13. What other debts do you have that can be discharged.

I am under the medium income. I have maybe another 5K in debt. I was not cited for not having insurance. At the time of accident I did not know I had been dropped. Apparently my insurance company sent a warning but I did not receive the cancellation notice until after the accident. My (former) insurance company investigated if they gave me proper notice and decided they did. Thanks for your help!