Why Car Insurance is a Necessity During Chapter 13 Bankruptcy

If you are thinking about filing for Chapter 13 bankruptcy, then one of the first things on your mind may be how this will affect your car insurance. You don't want to risk losing out on coverage and ending up in a more serious accident because you're uninsured! Luckily, there is no need to worry - all drivers who enter Chapter 13 bankruptcy can maintain their current auto insurance policy even after they file. Read on for more information about what this entails and why it's so important that you do not get rid of your car insurance during Chapter 13 bankruptcy.  

 

In Chapter 13 bankruptcy, you may still be required to make certain car "payments" in order to maintain your policy. These can include an insurance premium or a portion of the monthly payment that is set up by your lender for you on behalf of your car payments if they are included as part of the agreement. To avoid having these additional expenses added onto what could already feel like too much debt from other sources, it's important not to cancel your vehicle coverage during this time period - even though technically you are no longer making any payments and don't owe anything outside of court fees and provisions. 

 

Some drivers mistakenly assume that because their loan has been paid off (in most cases) through Chapter 13 bankruptcy proceedings, then they will have to pay less on their car insurance. However, this is not the case! If you do cancel your auto coverage during Chapter 13 bankruptcy proceedings, then that means you will have no protection in the event of an accident and will be liable for all costs incurred from such a wreck. 

 

You don't want to risk being uninsured when it comes time to file for Chapter 13 bankruptcy - make sure you maintain your current coverage at all times if you wish to avoid any unforeseen expenses or risks down the line! In addition, don’t forget to get in touch with an experienced bankruptcy attorney immediately if you are considering filing for bankruptcy. 

 

Lewis and Jurnovoy is a local law office serving the Florida Panhandle. We specialize in bankruptcy law, including Chapter 7 and Chapter 13 bankruptcy. We will work to achieve the best financial remedy for your outstanding debts. 

 

Lewis & Jurnovoy PCB 

2714 West 15th St 

Panama City, FL 32401 

(850) 913-9110 

https://www.LewisandJurnovoy.com