Car Accidents And Bankruptcy

December 17th, 2008 by Reed Allmand

Liability car insurance is suppose to cover an “at fault driver” in the case of a car accident. But what happens when one party sues another for an amount that is above and beyond the coverage provided by the car insurance company. For example, what if you are sued for $1 million dollars in car accident lawsuit? Well, most times the insurance company will settle with the plaintiff in the lawsuit for an amount well below what they are asking for; but there are other times when the plaintiff goes after the personal assets of the driver who caused the car accident. Can bankruptcy protect this driver being sued because of the car accident? Well, bankruptcy may be an option to protect this “at fault driver” but it depends on a few factors. The first factor is the cause of the car accident. If the “at fault driver” had a car accident because they were under the influence of drugs or alcohol, the debt cannot be discharged in bankruptcy. If the “at fault driver” willfully or maliciously caused the car accident, then the debt cannot be discharged in bankruptcy. If on the other, the car accident was not cause by a DUI and was not malicious or willful, the debt might be dischargeable in bankruptcy. If you are facing a personal lawsuit for a car accident, speak with a bankruptcy attorney before you go to trial to find out what bankruptcy options may be available to you.


About Reed Allmand


Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand


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