Legal Question in Insurance Law in New York

Auto insurance debt and my options with bankruptcy

First off, I have to applause you for a great site-with a huge amount of help-Thank you!! Now, I recently got into a car accident in my friends SUV. It was completely my fault, involving hitting a telephone pole. I've been told that if the car is totaled-it will be to my advantage. But if it is not-I will be looking at repair work in excess of $10,000 I do not have that kind of money and will be meeting with a bankruptcy lawyer within a month for my prior debts anyhow. Can I legally include the debt of this excessive bill IF it turns out I receive it? And if I can include it in my bankruptcy, will it affect my chances of getting car insurance in the future? An answer to this would be tremendously appreciated. Thank you ahead of time.


Asked on 5/10/05, 1:23 pm

1 Answer from Attorneys
Mark S. Moroknek Kelly & Curtis, PLLC.

Re: Auto insurance debt and my options with bankruptcy

If you had your friend's permission to be driving his SUV then his insurance should cover the loss unless he does not have collision. Then it should be your insurance that covers it-again unless you don't have any.

If you are legally obligated to pay the debt it becomes part of your bankruptcy estate-but that would require a lawsuit against you and a judgment on behalf of his insurer. You can't include it in the bankruptcy, unless you already owe it.

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Answered on 5/11/05, 3:26 pm


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