Q: My car was totaled and there are claims in excess of my policy limit of 25,000 Should I file bankruptcy?

A: Filing for bankruptcy relief is a major step, and you need to confer with an experienced lawyer. with full facts of your financial condition to your lawyer in advance of that conference.

Do that as soon as you can, as the best lawyer help is BEFORE any more happens.

On top of your financial details and whether bankruptcy relief suits you, be aware that damages caused by an auto accident may be non-dischargeable in bankruptcy and much of that issue may hinge upon how the claims against you are labeled by those involved, including the claimants and the insurers and any state court. A lawyer's assistance NOW may prove invaluable.

A: I agree with attorney Winterstein's post. More information is needed in order to provide an informed decision---you need to consult an attorney (bankruptcy is a start) to determine whether or not your financial status suggests bankruptcy. Additionally, an attorney can advise as to when is the best time to file bankruptcy---after all, clams in excess of your polcy limit does necessarily equate toa judgment and/or your responsibility at this time. Also, your insurance company might be able to work out/settled those claims in due court. Good luck.

A: More info is needed to properly answer your question.

A: I'm sorry about your accident. I agree with my colleagues - more information is needed. Bankruptcy issues aside, in which I defer to my colleagues, there are details that warrant review in the property & casualty file - what the other side's injuries are, the disposition of the case (is it in negotiation?, is it in trial?, is it a realistic figure?), whether UIM coverage is applicable, etc. Attorneys with experience in both bankruptcy and personal injury could offer you the most definitive insight after reviewing the accident file and your personal financial situation. Good luck

A: If your car was totaled and the claims exceed your policy limit, bankruptcy might not be your best first option. Before considering this drastic step, it’s important to explore other avenues, like negotiating a settlement or entering into a payment plan with the creditor. Many times, creditors may be willing to accept less than what’s owed if you can prove you are unable to pay the full amount.

Retiring adds another layer to the situation, especially if your income is going to decrease. You may want to consult with a financial advisor to understand how your current retirement savings and assets will be impacted by such a decision. Bankruptcy can have long-term effects on your credit, so it’s important to weigh those consequences carefully.

Another option to consider is liability insurance. Since you don’t have umbrella coverage, it's crucial to find out whether you have any other policies that might help cover these claims. In some cases, negotiating with your insurance company or working with a lawyer to potentially dispute the claims may help reduce your financial burden. Take the time to fully explore your options before moving forward with bankruptcy.