Car Accident & Bankruptcy!

yes, she can still purchase a car with a bankruptcy the question is what the interest will be?
some lenders may require a letter from the trustee authorizing her to purchase the car, however it sounds like they filed a chapter 11 or 7, and not chapter 13

Bankruptcy may be embarrassing and inconvenient but not the end of the world.

Also, she can sue for damages and loss and not settle so that she can get enough to pay cash for a car instead of another car note, that is if the other driver had insurance if she can get $6500 to 15000 then she can pay cash no need for another car note. Just a thought.

1 mom found this helpful

Did the other person have insurance? If so, that insurance company should be paying her for her car. She needs to call an attorney who does this type of litigation and see if there is anything she can do. A lot of these guys do not charge up front -- they are not paid unless you actually get some money. This is a scary thing to face when you do not know how to go about it. I know this from experience! When it comes time to get another car, one of the best ways to go about this, especially in a time of financial hardship, is to get a car that the insurance money will buy outright so she will not have a car payment. This will help their overall financial strain.

After a bankruptcy, all kinds of "offers" will come in the mail to sell her a car. Most large dealerships have a department that deals with "after bankruptcy" loans.
Tell her to make some phone calls and check with the dealers.

There are two types of gap policies, have her check to see if she purchased the one that gives her $5000 towards a new vehicle. If she does have that plan then the gap will cover a new vehicle or at least give her a down payment for a new one. If not she should go threw the person who hit her insurance. They are required to provide at least a portion if I'm not mistaken, at least they did when my brother was in a accident that wasn't his fault.

I wish you and your mom the best of luck and I hope it all works out in the end.

C. Cotton
1-800-304-0689
____@____.com
http://www.naohsarkworkshop.com/constancecotton_s9956

I am not an advocate of pulling in the lawyers who advertise on tv and suing people.

I do know from experience years ago, my husband was almost killed while in his company car due to someone else's negligence in driving. The other person's insurance paid my husband's company for the company car and my husband had a new company car waiting on him when he recovered. Our personal insurance through the employer covered the hospital and medical expenses.

The 2 insurance companies negotiated about the car and expenses. In the end, the other guys insurance did pay back the employer's insurance company for the expenses they incurred.

This can be a lenghty and stressful process. We happened to have an employer/insurance rep who worked on this instead of us having to do it. That is only because it happened while he was on the job.

I hope things work out well for your mom and thank goodness everyone is ok.

T