Can I file bankruptcy on a car loan?

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Can I file bankruptcy on a car loan?

My daughter had an accident in a van I had purchased. However, my insurance was cancelled due to lack of proper paperwork; I was not aware of this. The accident was not alcohol or drug related.

Asked on April 23, 2013 under Bankruptcy Law, Missouri

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

To do so simply to avoid the mistake of failing to have insurance coverage and to forego payment on a vehicle that was in this accident could be considered tantamount to fraud and therefore will probably be denied. Now, of course if you wish to add this to the other items you have listed in a bankruptcy you are going to be filing anyway, then yes you can add it but to claim bankruptcy for one car loan is suspicious and will get you a denial and into hot water.


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