Closing an auto claim with lien holder without collecting a claim check because of bankruptcy?

by Jr

My vehicle was involved in an auto accident this vehicle is now a total loss with a total loss claim over $7k. However this vehicle it’s under bankruptcy chapter 7 and the debt was discharge meaning I don’t owe the lien holder anything, however, the title is still on both. I don’t wish to file a claim and I just want to have the lien repo the vehicle without collecting since I don’t wish to re affirm the debt n have them sue me for the balance of total debt of 15k when this debt was discharge, my question is can I close my claim, also no injury or other property was involved.

Answer to Closing an auto claim with lien holder without collecting a claim check because of bankruptcy?

Hello Jr,

No, you cannot close the claim. The auto policy provides protection for lien holder under financial responsibility clauses.

The insurance company has a duty to them, and they lien holder will get whatever insurance maybe available for them. The bankruptcy protection will discharge your personal debt on the loan, since you are not reaffirming or redeeming the collateral, however, this will have no effect on the rights of the lien holder as to a. repossess the collateral (they have to do this either when the automatic stay is not longer in place, or when they move – and the judge signs an order for relief from stay.

or b. Get payment from an insurance policy that protects their interest.


Good luck
http://www.auto-insurance-claim-advice.com