Anderw Telles

The other day I had the opportunity to meet with a client who was considering filing a section 7 bankruptcy in the Southern District of Grand rapids. While discussing their monthly bills, I asked your client if he had car insurance for young drivers. His or her answer was no. This specific reminded me of a married pair who didn’t have car insurance for young drivers once they filed bankruptcy and didn’t bother to transport it when they filed. I want to share their own story with you. Inside 2003 the actual couple recorded a section 7 bankruptcy in Des Moines, Grand rapids. Everything went effortlessly. The pair received their own discharge and was relieved from their debts. Soon after filing bankruptcy both husband and wife began doing work at excellent jobs and started making some good money. About couple of years when they filed their own chapter 7 bankruptcy the actual couple were able to obtain financing for a $200, 000. 00 house. Everything was looking up for the husband and wife – but we know that i wouldn’t end up being writing this if everything remained excellent. In 2007 the actual wife was involved in an auto accident. Unfortunately, the actual wife caused the crash. She T-boned a motorcyclist who was maybe not wearing a helmet. I’m unsure the price tag on the health care bills, but the last I checked it absolutely was over $300, 000. 00. Let’s be clear -accidents perform happen and that’s why we’ve car insurance for young drivers. This is where things turned bad for your family. Case was filed against the couple with regard to damages from the auto accident. Points got expensive. Eventually, the actual couple came back to see me for many financial assist. I inquired about car insurance for young drivers and the husband and wife just type of looked down and mumbled that they didn’t have any insurance when the accident took place. The clients wanted to know if the bills involved in the auto accident could possibly be discharged in bankruptcy. I told them that i had what’s promising and some bad news for them. What’s promising was that unless the actual wife purposely caused the actual accident (I suppose it probably would not be a major accident if she purposely ran over the motorcyclist), or was beneath the influence prescription drugs or liquor when she was in the accident, the actual bills associated with the auto accident could possibly be discharged in bankruptcy. The particular bad news was that the couple could hardly discharge the debt under section 7 of the bankruptcy computer code until 2011. Borrowers must hang on eight (8) many years between filing chapter 7 bankruptcies. This specific news cantankerous the couple and also you could begin to see the worry in their eyes that they would lose everything that they had worked so hard to achieve. That is not the finish of the story. There is more very good news and much more bad news. The next very good news is that couple might have been the luckiest people I have ever found. As it happens that they were permitted file for a section 13 bankruptcy. Debtors just need to wait several (three) years when they file bankruptcy to file a chapter 13 bankruptcy. Not merely were they eligible, they qualified for a chapter 13 bankruptcy since they had non reusable income open to pay to their creditors. So that it appeared that the bankruptcy courtroom could supply some rest from a number of their responsibility. But… Understand that I told you there is additional poor news? This specific couple was needed to pay to the Chapter 13 trustee the sum of the $2, 294. 64 monthly for the next 60 months. In addition, that they had to turn over-all tax refunds received for the next five years. State laws demand all drivers to be insured once they operate an auto. As a society, we would like people to be able to take responsibility once they cause a major accident. We don’t want visitors to be reprimanded for having a major accident and that’s why congress and the courts give individuals who truly had a major accident the opportunity for a fresh start beneath the bankruptcy courtroom. Just think the amount of money this couple would be saving monthly if they could have just purchased a proper amount of coverage. I tell this kind of story to everyone I speak to who doesn’t have car insurance for young drivers. These clients didn’t lose everything – just nearly everything. Please follow regulations and be sure you keep your car insurance for young drivers current so that you can protect yourself financially. And, needless to say, when you have any concerns about insurance liability and bankruptcy, be sure to contact an experienced bankruptcy attorney in your town