Legal Question in Credit and Debt Law in Wisconsin

All loan agreements require consumers to keep collateral insured, and private insurance would be much cheaper for you than the lender's forced placed insurance, so you could save yourself money by renewing it. A better idea might be to sell the vehicle (for scrap if necessary). While all sale proceeds would go to the lender, my guess is that you could get nearly enough, even as salvage, to pay off your loan. Once sold, you will be out from under the burdensome insurance requirement. A chapter 7 bankruptcy could discharge all of your personal obligations on this loan, including the insurance charges (as well as most of your other general unsecured debts), but a properly perfected title lien would survive the bankruptcy. You would therefore need to continue those payments and insurance if you wanted to retain your first vehicle following bankruptcy, but a total payoff would then be much closer for you. This sounds like a subprime, high interest rate loan, so hopefully you have also now learned to avoid those in the future and shop for the best interest rate for all vehicle loans. The cheapest loan rates are usually available at credit unions, so you should join one of those if you are not already a member.

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