My Car Was Hit by a Train and I Owe CarHop


Dear Steve,

My car was hit by a train. I have a contract with CarHop, and my insurance had lapsed.

How do I get their money and buy from them again?

Is bankruptcy the way I should go?

Can I file bankruptcy to get Car Hop’s money to them?



Dear Joseph,

I think this is officially the first car hit by train question I’ve ever had.

When you are talking about Car Hop, I’m assuming you are talking about the auto finance company.

If your insurance lapsed, you are responsible for the entire debt. But you might want to check and see if CarHop discovered your insurance had lapsed and put a forced placed insurance coverage in place.

You could eliminate your liability for the debt in bankruptcy, but that would not repay CarHop anything. However, it would give you a fresh start.

The lesson learned here is not to let your insurance lapse and don’t get hit by a train.

I’m afraid the Magic 8 Ball says, “Chances of Getting financed by CarHop again are slim.”


You are not alone. I’m here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don’t give up.

Damon Day - Pro Debt Coach