If your vehicle is deemed a total loss you are required to obtain bankruptcy court’s permission to settle the claim. Furthermore, the court permission is necessary if you intend to modify your bankruptcy to stop payments to the lender and if needed purchase a new vehicle.
The first thing you do is notify your insurance company that you are in bankruptcy and notify your lawyer of the total loss. In addition, you need to notify the trustee in your case to stop payments to the lender if there is one.

You can enter into a tentative agreement on the property damage with the insurance company, but this has to be approved by the court.

As for a new vehicle, once your figure out the monthly payment you will need to amend your expenses for filing with the court.  Your Baltimore bankruptcy lawyer will also help with filing any amendments to your chapter 13 plan.

Once all these things are lined up then your bankruptcy lawyer will help schedule and attend a hearing before the bankruptcy court requesting permission to proceed.

For a free consultation and a specific quote depending on your particular needs please contact me.

Baltimore bankruptcy attorney

Maryland bankruptcy attorney

Joe Githuku

jgithuku@410law.com

410-849-9529

www.410law.com

Disclaimer: This article is provided for informational purposes only and should not be construed in any way as legal advice. This article does not create an attorney-client relationship.