Car accident injury and bankruptcy

Car accident injuries and bankruptcy relate in two primary ways:

1. If you caused an accident and are liable for another’s injuries or losses;

2. You were injured in a car accident caused by someone else.

If you were responsible for an accident that resulted in someone else’s injury, you may be liable for damages, meaning you may owe that other person money for their medical bills, pain & suffering, wage loss or property (car) damage. If you don’t have insurance, or enough insurance to cover the potential claim, you could be personally liable. Bankruptcy eliminates this type of debt and is a common cause of bankruptcy filing.

If you were injured by someone else in a car accident (or other type of accident), you have a potential claim against that person. That money you may get from the accident must be disclosed in your bankruptcy and, almost always, can be protected (exempted) entirely, meaning you can keep what you get from the injury and still eliminate your debts through your bankruptcy filing.

Bankruptcy means test: what is it?

The means test in bankruptcy is a test to determine whether someone qualifies for bankruptcy. What the means test measures is whether someone can afford to pay their debts. If they can’t, their debts can be discharged, or eliminated, through a bankruptcy filing. If they can pay their debts, or at least a portion of them, the means test tells what they than can pay and what they can’t. Whatever debt can’t be paid can be discharged through bankruptcy.

There are a number of factors that go into the means test including, but not limited to, family income, size and expenses. Since the many variables can make the difference whether someone qualifies for bankruptcy or not, it is best to seek help on this subject.

Remember, bankruptcy consultations are always free!

Bankruptcy: can my employer discriminate against me for filing?

No. An employer cannot discriminate against you for filing bankruptcy. Federal law protects an employee’s right to file bankruptcy without retribution, discrimination or retaliation. You cannot be fired, demoted or put in jeopardy of your job for filing bankruptcy. You are safe!

“Wild card”: what it means for Sacramento bankruptcy filings

“Wild card” is a term used for bankruptcy filings here in Sacramento and California related to protecting (exempting) your property. In addition to exempting all forms of your property, exemption laws used in California allow you an extra allowance of property protection by increasing the amount of property you can protect through a “wild card.” When applicable, the wild card exemption allows over $20,000 of property protection when you file for bankruptcy. Often the wild card is used to protect cash, bank accounts or tax refunds. It is a great tool to protect your property while eliminating your debt through bankruptcy.

Car repossessions and bankruptcy

If your car is repossessed you will likely owe the finance company or bank for the costs connected with repossessing your car. More so, you may owe for the difference between what you owed on the vehicle and the amount for which the car was sold at auction. This gap is referred to as a deficiency.

Both the repossession costs and any potential deficiency are dischargeable through a bankruptcy filing.

If your car is repossessed, bankruptcy can also get your car back. Timing and type of bankruptcy are factors in whether your car can be reclaimed if you file for bankruptcy.