You Have Options When You Work With a Bankruptcy Attorney Near You
Most states today require a minimum amount of insurance to legally operate a vehicle. However, that doesn’t mean that everyone who drives a car can afford it. Driving uninsured is more common than you might imagine. One study by the Insurance Research Council claims that for every seven drivers you passed on the road between 2017 and 2022, at least one of them was uninsured.
Yet insurance costs are only one reason why drivers go uninsured. Other financial issues can play a major role in driving uninsured. Eleven million drivers have had their licenses suspended due to debt from traffic violations and tickets, failure to pay child support, and more. These drivers also contribute to the significant number of uninsured motorists on the road.
What Financial Troubles Affect People Who Drive Uninsured?
If you can’t afford to pay for insurance or you aren’t legally allowed to drive, you might still try to keep commuting, running errands, and more, without getting caught. However, the worst case scenario happens all too often: a car accident.
When you’re uninsured and in an accident, financial troubles pile up fast. Damages to pay, medical bills, and the loss of a car may make money matters even more challenging. Uninsured drivers like you typically recognize at this point that the one lifeline you had – your vehicle – has only added to your debt.
At this point, you may not know where to turn. However, there are solutions available to get rid of debt, put unfortunate choices they’ve had to make in the past, and to find a way forward into financial freedom. You can seek out an expert bankruptcy lawyer who can help with Chapter 7 bankruptcy or Chapter 13 bankruptcy, depending on your specific circumstances.
How Can Bankruptcy Help Uninsured Drivers Involved In an Accident?
Bankruptcy is an effective tool to get rid of debt that isn’t tied to an asset, such as payments on a vehicle or the mortgage on your home. If you have medical bills, credit card bills, and other debts related to damages you may owe from an uninsured car accident, a lawyer with expertise in Chapter 7 and 13 bankruptcy is a critical resource.
Bankruptcy works like this:
- Talk to a lawyer: You select a bankruptcy attorney and attend a consultation. An initial meeting with a reputable lawyer is typically free.
- Determine your eligibility for bankruptcy: During this consultation, the bankruptcy lawyer will determine whether you are under the income threshold in your state. If you make less than the median household income level for your state, you are eligible for Chapter 7 bankruptcy. If you make more than the income threshold for your state, you are eligible for Chapter 13 bankruptcy. Learn more about income thresholds.
- Understand the plan to get rid of debt: Your bankruptcy lawyer will explain that Chapter 13 bankruptcy requires a three-to-five-year repayment plan to pay off your debt, after which your debt is discharged. In Chapter 7 bankruptcy, your debt is discharged upon filing.
- See the results: Most people who choose bankruptcy can bring their credit score back into the 700s and be eligible for a mortgage two to three years after filing.
Bankruptcy is a cost-effective solution for many who can’t afford to repay their debts. Yet there are two important conditions that affect the success of a bankruptcy filing:
- Impaired driving: Death or personal injury claims against you can’t be discharged if alcohol or drugs were involved.
- Malicious intent: Intentional, malicious driving damages are also non-dischargeable.
Remember, there’s no requirement that you have to get into an accident first to realize that you need to do something about your debt. You can decide that you want to find a solution for your financial troubles and legally and safely get back on the road.
What About Underinsured Drivers? How Can Bankruptcy Help?
Underinsured drivers may find themselves in a similar financial situation to those who are uninsured. You can potentially end up in an accident with damages that your insurance won’t cover.
If you are involved in an accident, are found to be at-fault, and a judgment has been secured against you to pay another drivers’ claim, you may be faced with out-of-pocket expenses that you can’t afford.
However, bankruptcy can serve as an effective solution. Uninsured drivers can benefit from Chapter 7 or Chapter 13 bankruptcy to discharge unfortunate debts related to an underinsured accident, provided that there was no malicious intent or drugs and alcohol involved.
Can Bankruptcy Help Professional Truckers Who Get In Expensive Accidents?
Over-the-road truckers may also find themselves in a challenging financial situation related to an accident. If you are a professional trucker, your rig is their livelihood, but an accident can suddenly put your work in jeopardy.
Owner-operators typically buy their own insurance policies on the trucks they drive. However, economic challenges across the trucking and logistics industries may lead some drivers to consider purchasing less expensive policies. This puts you in a similar position to motorists who end up in an accident and find themselves weighed down by debt related to the crash.
Even if your insurance policy is through your trucking company, you may be liable for an accident. Liability may fall on you in these circumstances:
- Fatigue caused the accident, and it is determined that you disregarded federal labor laws about daily hours of service.
- You violated a traffic law and caused an accident.
- Your negligence caused the accident.
Much like motorists who end up being liable for injuries or damage, you can also depend on Chapter 7 bankruptcy or Chapter 13 bankruptcy. If you’re facing debt due to an accident in your rig, consider meeting with a trusted bankruptcy lawyer near you.
The right attorney can help you keep your business assets, like your truck or trailer, so you won’t have to turn them over to a bankruptcy trustee to pay off your debt. Many states have bankruptcy laws with “tools of the trade” exemptions that allow you to protect possessions related to your business.
Choose a Bankruptcy Lawyer Near You Who Understands Uninsured and Underinsured Drivers
If you are uninsured or underinsured and involved in an accident, the fear, stress, anger, and worry that come with these situations is challenging enough. You deserve a bankruptcy attorney near you who has compassion for people in debt and are empathetic to the choices that come with financial challenges. Your bankruptcy lawyer should also be able to find a solution that is hand-tailored for you.
Sometimes the motivation we need to make improvements for the better comes from difficulties and hardship. An attorney will see beyond your past decisions and help you get on proper footing for the future.
Continue your research into the best solution for you by finding out whether you’re eligible for Chapter 7 or Chapter 13 bankruptcy.