What to do about bankruptcy and a car accident?

UPDATED: Aug 1, 2013

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What to do about bankruptcy and a car accident?

I am currently in Chapter 13. My income was reduced but yet my attorney said that I could not reduce my payments. Recently, I had an automobile accident and my car was totalled. My bankruptcy payment for my car was approximately $260 a month from my total trustee payment. I had researched online a substitution of collateral so that I might be able to get a car with the insurance proceeds and keep paying the bankruptcy. I was told that they did not file motions like that in this jurisdiction and only businesses had those options. So now my only option is to surrender the car. They only reduced my payment by $100. I still do not understand if I was paying $260 why this amount was not reduced from my payment?

Asked on August 1, 2013 under Bankruptcy Law, Virginia


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Based upon the complicated matter you have written about you need to consult with your bankruptcy attorney about the matter you have written about for clarification and guidance. If you do not have a bankruptcy attorney, you can find one in your locality via attorneypages.com. The reduction of payment might be the result of an insurance payment on the totaled car to the company that you were making your car payments to.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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