Does filing BK mean I loose my insurance?

[davie20001]

Hello:

I have been reading some posts and getting a little confused.

If I file BK7, would I loose my car insurance? I am getting the feeling I will need to change banks for some reason also.

Please help me understand!

thanks
davie

[BassBoy]

You should not lose your car insurance. We were able to stay with our auto insurance provider....and we had told them what we were going through. It wasn't a big deal. They even allowed to defer some payments until we recovered. We're good with them now. But anyways, I don't believe an insurance company would drop you for filing BK.

If you didn't file BK on a debt you owed to your bank, then I don't see the need to change banks.

[SinkingFast]

It's really gonna depend on your insurance company. Some drop customers who file BK. Some jack your rates. Some, there's no change at all. There's no rhyme or reason to it. It really depends on the insurance carrier.

The people changing banks generally have an over draft protection, a CC, a car loan they are including in BK with the same bank they have their Checking Acct with. Banks aren't so bad, but Credit Unions are notorious for taking funds from your Checking to pay toward the other debt owed.

We didn't change banks and have had no change in level of services. The only thing we did do was to temporarily stop Direct Deposit. Doing manual deposits helped give us better control over the flow of money into our bank acct.

We also switched to using our Debit Card for purchases and paid bills with Money Orders. Money in our Checking Acct was instantly gone. No waiting for checks to clear. Which is especially important right at filing time. You want that bank balance as accurate and low as possible as you have to cover those funds with an Exemption.

[CATCHMEIFYOUCAN]

Car Insurance

I have been reading some posts and getting a little confused.

If I file BK7, would I loose my car insurance? I am getting the feeling I will need to change banks for some reason also.

I'm with Allstate and have been with them for 18 years, they have never dropped me and I had filed Bk twice! Once in the early 90's, now here I am again. I will tell ya though, I'm paying $400 more now every 6 months than I was before (okay okay $1200 every 6 months! LUCKY I hit a lotto number and paid them off for the next 6 months). Now I don't know what to tell you why they jacked up my rate.

1. Is it because I just bought a new car a month before my 341 meeting ? Nuttin' special, just an 06 Hyudai Sonata

2. Is it because all the accidents I've had with them the past several years?

3. Is it because I had an accident just 2 months into the new car which caused them to pay out a little over $5000 in damages?

4. Is it the BK ???

Help me out here, Catchmeifyoucan

[periwinkle13]

More and more insurance companies check your credit before quoting a price. If you are a current customer, they may raise your rates after checking your credit - much like cc companies do. This has been a disaster for many people. It used to be that your insurance rates were dependent on your driving record, number of wrecks, etc. Now you can be a perfect driver, perfect history, and have out of whack insurance premiums, simply based on poor credit. And this can effect home insurance as well.

You can ask your insurance company if they use credit checks to determine rates. More and more are switching to that.