I had decided to file chapter 7 bankruptcy about a month ago. I had a car I was going to keep out of it and finish paying the note. I live in the state of Alabama (Cullman County). My car insurance lapsed, the bank was never notified by Allstate insurance. The car was parked and I was using an insured vehicle. My husband had taken some of his prescribed medication and apparently forgot the car was not insured. He succeeded in totalling the car, the bank still is unaware since I've been paying on the note. My question is:
Can I include this vehicle in my bankruptcy even though the insurance lapsed and I had agreed when I signed the papers to keep full coverage insurance until the lien was paid in full? Or am I risking a lawsuit? FYI - the balance is only $1,397.
Can I include this vehicle in my bankruptcy even though the insurance lapsed and I had agreed when I signed the papers to keep full coverage insurance until the lien was paid in full? Or am I risking a lawsuit? FYI - the balance is only $1,397.
