You are in an auto accident. You are taken to the hospital and received medical treatment. Your car is totalled and you are counting on your car insurance to pay for a replacement car. You are at fault for the accident and the other driver is injured. And his car is totalled. After receiving a request for payment for the vehicle damage from the other driver’s insurance, you contact your auto insurance company and are told that your insurance was cancelled before the accident.
First, it is important to retain an experienced New Jersey insurance attorney to see if the cancellation was done properly and in compliance with law. If not, the attorney may, with or without a lawsuit, persuade your insurance company to reinstate your insurance and cover your accident.
Similarly, it may be that your insurance company claims for some reason that there is no coverage for the accident. Again, a seasoned New Jersey insurance attorney can review your insurance policy and advocate for coverage with your insurance company.
A related scenario is when you borrow a friend’s car, get into an accident, and then learn that your friend had no insurance. Then you are dependent upon your friend to try to have his insurer cover the accident.
At the end of the day, after exhausting your options, you may have uninsured exposure for your medical bills, for the other driver’s pain and suffering, and for the damage to the vehicles. Then Chapter 7 bankruptcy may be a way out.
I have helped many uninsured drivers avoid all liability for an accident through the bankruptcy process. The ideal client has modest assets and has a monthly income below the Chapter 7 income threshold. Bankruptcy can wipe the slate clean and give you a fresh start.
An exception to this is if you were driving under the influence of alcohol or drugs. Then you would not be entitled to a discharge.
We are here every day to answer your questions about bankruptcy law. Give us a call.