Bankruptcy Attorneys Are a Key Support in Times of Crisis
The unimaginable has happened: you’ve been in a car accident, and you’re uninsured.
In a situation like this, it’s difficult to know who to turn to next, especially if you’re worried that you’re going to be sued for damages or medical bills for the other driver. You also might be stressed about the cost of being caught driving uninsured and what the financial penalties could do to your bank account.
In many cases, a situation like this will lead to debt that you’re not sure how to handle. You may not be able to drive to your job because of damages to your vehicle and your own injuries, and you may not have enough cash on hand to cover the other driver’s bills if you were at fault. And it doesn’t take long for the injured party to hire a lawyer to sue you.
It may be helpful to know that many people have been through this. They’ve discovered what happens when you file for bankruptcy as a solution to an uninsured or under-insured car accident: you get a solution that works.
Uninsured Drivers Still Have Options with Bankruptcy
Fortunately, you still have options to resolve your car-accident-related bills when you’re held liable for an accident or injuries, and you don’t have insurance to cover the expenses.
First, hire a bankruptcy attorney that has experience with strategic debt relief solutions. They can help you understand what happens when you file for bankruptcy. Typically, Chapter 7 or Chapter 13 bankruptcy is your best solution for clearing up your debts related to the crash.
Chapter 13 and Chapter 7 bankruptcy can discharge your debt including credit card bills, medical bills, and other expenses that are considered “unsecured,” meaning that there isn’t an asset attached to them, such as a car payment or a mortgage. Damages from an accident caused by an uninsured motorist are generally dischargeable in bankruptcy. However, it’s important to know that your accident can’t be related to drugs and alcohol. Claims against you for death or personal injury caused by your operating a motor vehicle under the influence of drugs or alcohol are not dischargeable in bankruptcy.
Additionally, to get out of damages caused by an uninsured motorist in bankruptcy, the accident can’t be considered a malicious act. Fortunately, driving without insurance is not considered malicious, which would be more likely to exist if you intentionally used your vehicle to create damages. If you intentionally cause damages with your vehicle, these bills will not be discharged in bankruptcy.
Denver residents who have been in similar situations find that after bankruptcy, it’s possible to rebuild your credit score and even become eligible for a mortgage. Bankruptcy isn’t the end of life as you know it. In fact, it’s a new beginning. You can have a 700-plus credit score and be eligible for a mortgage 2-3 years after filing bankruptcy.
After an Accident: Over-the-Road Truckers and Filing for Bankruptcy
Unfortunately, over-the-road truckers can experience financial hardship after getting into an accident in their rig. In some cases, uninsured or underinsured truck drivers are liable for these accidents. However, if the damage is significant enough, it is often too difficult for truck drivers to pay, given that tractor trailers can be extremely expensive.
Truck drivers may be liable in the following situations:
- The driver wasn’t following regulations, such as exceeding the limit on hours served in a day, which caused fatigue and led to an accident.
- The driver wasn’t following traffic laws and committed a violation that led to an accident.
- The driver was negligent, and it can be proven that they didn’t exercise caution while driving.
In these cases, it’s possible that you could get stuck with a bill for damage to either your truck or another vehicle. However, filing for bankruptcy with a knowledgeable attorney can help discharge this debt. Similar to the case of a driver with no insurance, an over-the-road trucker could potentially have bills related to their accident discharged, as these are considered unsecured debts, much like credit cards and personal medical bills.
While no one wants to have to seek out debt relief because of an accident, professional truck drivers who file for bankruptcy learn that it’s a cost-effective legal solution when they’re unable to repay debt. In many cases, the trucker can keep their assets through bankruptcy, including their truck and trailer. This is because Colorado law provides for protection from creditors of up to $60,000 of tools of the trade, if the inventory or equipment is used for your primary source of income ($20,000 if used for secondary source of income).
How to Find a Premier Bankruptcy Attorney for Help
Key solutions for uninsured and under-insured drivers exist if you can find a bankruptcy attorney that knows the legal landscape and how to develop a strategy to discharge the bills you owe through Chapter 7 bankruptcy.
Here’s how to know if you’ve found a premier lawyer to help you file for bankruptcy:
- They offer a free consultation – virtual, in-person, or over the phone – to provide you with a potential plan that helps relieve your financial distress.
- They’ve practiced law long enough to have helped multiple clients in situations just like yours. Check their website’s testimonials to get a sense of their reputation and track record.
- They offer client education about what happens when you file for bankruptcy, as well as the many benefits of their firm’s specific legal solutions.
If these key attributes are in place, you’ve likely found a bankruptcy attorney that will deliver a solution to help get you out of financial distress.
Learn more about how bankruptcy can provide debt relief, including assistance with tax debt, credit card debt, and small business debt.