What Happens When I Have a Car Accident While in a Chapter 13 ?

Posted by Kevin Ryan | Oct 26, 2016 | 0 Comments

Claim for Property Damage to Vehicle 

If you are a debtor in a Chapter 13 bankruptcy case and are involved in a motor vehicle accident, there are two major issues that your attorney will have to address. The first issue is the extent of damage to the vehicle.  If you have a lien on the vehicle ( an auto loan secured by the vehicle), the lender must be informed about the auto accident.  You are required to maintain auto insurance under state law and under the terms of your policy the auto lender will be the "loss payee" if you are at fault in the accident. If the other party is at fault, and your vehicle is damaged, you must provide the information about the other driver and their insurance company to the lender, through your Chapter 13 Attorney. Usually this information is contained in the police report taken on scene.  Your auto lender has the right to have its claim paid with any insurance proceeds if your vehicle ( their collateral) is determined to be a total loss.  

Claim for Damages for Personal Injury 

The other part of an auto accident that is important in your Chapter 13 case is the issue of personal injury. If you have been injured in an auto accident, notify your attorney ( and your insurance company) immediately.   Damages for personal injury are determined separately from damages to compensate you for property damage, and the amount of the claim usually in dispute.   You should consult with your attorney about the value of your claim, and so that your attorney can file the proper amendments to your bankruptcy schedules to disclose the claim and to take any available exemption under bankruptcy law.   The attorney who is handling the personal injury claim, even if it is your Chapter 13 Attorney, must be first appointed by the U.S. Bankruptcy Court.  Any settlement of the claim must be approved by the U.S. Bankruptcy Court, and you should anticipate that a portion of the settlement will have to be applied to paying towards your Chapter 13 Plan. 

If you have questions about a personal injury case or the bankruptcy laws, Call me. I'll BE there for you.  -Kevin M. Ryan, Bankruptcy Attorney.

About the Author

Kevin Ryan

"I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. And I'll make them go away."  -Kevin Ryan, Attorney at Law Kevin Ryan is a graduate of the College of Wooster and the Cleveland Marshall College of Law. He is admitted to practice before all Alabama State Courts, the United States District Court for the Southern District of Alabama, and the United States Bankruptcy Court for the Southern District of Alabama. The United States Bankruptcy Court is a part of the United States District Court. Since 1998, Mr. Ryan has represented thousands of individual clients in bankruptcy, criminal, divorce, probate, personal injury, and real estate matters.  Attorney Ryan is also a licensed real estate agent in Alabama.  He handles  Bank-owned properties, short sales, and conventional sales in addition to conventional real estate listings.   This wide range of experience enables Attorney Ryan to take a wider look at your legal matter. It is important to consult with an attorney who can see from experience how other legal issues may affect your situation, and advise you accordingly. Personal Info Kevin Ryan is a member of First Baptist Church in Silverhill, Alabama. He resides in Silverhill with his wife Jessica and their three children. Committed to helping our Clients achieve a fresh financial start Our practice focuses primarily on consumer bankruptcy matters under Chapter 7 and Chapter 13 of the United States Bankruptcy Code.  Our law practice also includes matters where bankruptcy litigation, appellate work, or involvement in civil lawsuits is needed by a client.     No representation is made that the quality of any of these legal services is of higher quality than another attorney or law firm.   The United States Bankruptcy Code requires the following notice:  We are a Debt Relief Agency, which means we help people get legal relief from their Debts through the bankruptcy process. Interested in learning more about our bankruptcy attorney near Mobile, Alabama? Contact Us for help with chapter 7 bankruptcy or chapter 13 bankruptcy in Mobile, Baldwin and Washington counties. Education Juris Doctor, Cleveland Marshall College of Law, 1997 Employed full time as a paralegal while attending law school in the evenings. B.A., The College of Wooster, 1994 NCAA Div.III All Conference (N.C.A.C.) Football Team : Defense 1993; Most Inspirational Senior Award 1993; Co-captain 1993; Letterman 1991-1993; Phi Sigma Alapha Fraternity 1991-1994; Athletic Director Jurisdictions Admitted to Practice Alabama


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I'll BE there for you.

I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. - Kevin Ryan, Attorney at Law