Adequate Protection of Vehicle?
Adequate protection of vehicle means that, as long as there is a lien holder on the vehicle, the full coverage insurance is required. Many debtors have carried only liability insurance on their vehicles that are financed, so when they file Chapter 13 bankruptcy the creditor will insist on adequate protection.
Many debtors don’t realize that liability insurance will not provide coverage to replace a stolen vehicle or repair a damaged vehicle. To protect their collateral, lien holder requires comprehensive and collision insurance. This is not just a requirement while in Chapter 13, but is state requirement of any vehicles with leinholder.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
