Can they cancel the policy?

[magyar123]

Assume you plan on filing 4 months from now. As we all know no one planning to file should charge anything 60 to 90 days before filing.
Assume that you charge your annual car insurance policy 4 months before filing.
Will the credit card co. nofify the insurance co. when you file? Can the insurance co. then cancel your policy?

[isitreal]

You cannot be discriminated against legally for filing bankruptcy. If they cancel or threaten to cancel your policy, contact your lawyer.

[HHM]

The credit card notifying the insurance is not the issue, its the trustee going after the payment as preferential that is the issue...but the trustee will not do that because car insurance is most likely considered a necessity.

[Bandit]

no one planning to file should charge anything 60 to 90 days before filing

I think some people misunderstand that rule thinking they can charge up to that point. All the 90 day rule really says is charges made in that period are presumed non dischargeable. That does not mean that other charges prior to the 90 days of no charging can't also be made non dischargeable.


After all, in most states it is the law that you must have insurance with basic coverage on every auto that you have.

Two months ago I charged my car insurance for the year & this is always what I do. Charge it then pay it back in a couple of months. You get a better rate if you pay for the whole year.

So, if they want to make me pay that, I really don't care.

Again, I don't know when I am ever going to get to an attorney & was not going to get into all the red tape with the law for not having car insurance, so this was a way better route for me to go.

Will the credit card co. nofify the insurance co. when you file? Can the insurance co. then cancel your policy?

I have my doubts that auto insurance alone would be made non dischargeable unless it was an enormous amount & well over $500.00. It wouldn't be the bank going to the insurance company trying to cancel the policy but rather them trying to make you pay the balance by going thru the judge. or or OR, the insurance company cancels you for having a BK (not for charging it), & yes some will do that.

I think I have all that correct & someone correct me if any of that is wrong.

[Bandit]

its the trustee going after the payment as preferential that is the issue

Oh yah & that too. So like if someone charged $600.00 for insurance, the trustee could go to the insurance company & get some of that back to distribute to the other creditors?

That would be a big pain but I bet it has happened before.