It doesn’t rain often in Arizona, but when it does, it can rain heavily and create unusual floods. The safest bet is to stay at home during these storms, but that isn’t always an option. Those who drive during these torrential downpours sometimes find themselves trapped in flash flood zones. But these flash flood zones are typically clearly marked by signs, giving drivers plenty of warning to avoid them during particularly rainy days. Rescuing motorists trapped in floods is dangerous and costly for emergency responders. Who should be responsible for these costs- the public, or the drivers who cause them to be incurred? If you drive in Arizona, you should be aware of the consequences of disregarding the safety of yourself and others by driving into a flood zone. You may find yourself in serious financial trouble if you are involved in this type of situation. It may be severe enough to require debt relief such as bankruptcy. Learn more about the benefits of declaring either chapter 7 or chapter 13 bankruptcy in Arizona today. Atlas Bankruptcy Lawyers offers reputable legal services with payment plans meant to work with your budget. Schedule your free phone consultation today at 602-649-4949 or to learn more.
Arizona Revised Statutes Section 28-910
A.R.S. § 28-910 is sometimes more casually referred to as Arizona’s “Stupid Motorist Law.” This statute allows for a motorist who drives into a flooded area to be held liable for the emergency response expenses to rescue them and any passengers. In some cases, the motorist can be convicted of A.R.S. § 28-693, or reckless driving, for driving into a flooded area. Section 28-910 also allows for a motorist to be held liable if they drove past a barricade to enter the flooded area. Under this statute, insurance companies can exclude coverage for damages incurred from entering a flood zone. However, this could easily become a massive debt that the motorist will never realistically be able to pay in full. Therefore, section 28-910 caps the liability at $2,000 for violating Arizona’s Stupid Motorist Law.
Debt From Vehicle Damage
Whether or not a driver is held financially liable for the cost of emergency responders for their rescue, they may face significant costs associated with water damage to their vehicle. The main factor here will be what type of auto insurance coverage the driver had at the time of the flooding incident. A driver who only maintains state minimum coverage might not receive compensation after a flood. Insurance companies are legally allowed to exclude Stupid Motorist damages from coverage. Comprehensive coverage is the type of auto insurance coverage a driver would need to have in order to receive payment after vehicle damage from a natural disaster like a flood. Comprehensive coverage would become effective if the driver’s vehicle was stolen, or received other natural damage from a storm, like hail dents or a fallen tree branch. For a flood, it applies whether the driver was in the vehicle or the vehicle was parked on the street during the storm.
Most insured drivers will have to pay a deductible before coverage from their insurance kicks in. Generally, the lower the deductible, the more the driver has to pay each month. Some drivers have zero deductible policies, so they don’t have to pay hundreds or thousands of dollars to receive the benefits of their coverage. But regardless, it generally will be far less than the full cost of the repair, even after an increase in insurance rates. These savings are important, especially if the driver is also held liable for the costs of emergency responders.
There’s a good chance that a vehicle that has been trapped in a flood will be damaged upon repair. Depending on their vehicle’s market value and their insurance coverage, they may or may not be able to afford a new vehicle to replace one that has been totaled. If a driver needs bankruptcy due to flood expenses, they should be aware of how bankruptcy could affect their ability to purchase a new vehicle. In chapter 7 bankruptcy, debtors can purchase a new vehicle shortly after filing, as they can begin accruing new debts after that debt. However, some lenders will be reluctant to finance a debtor in an active bankruptcy case. This could also result in less favorable terms and interest rates. In chapter 13 bankruptcy, a debtor needs permission from the trustee before making a major purchase and incurring a new monthly expense, as it could affect their ability to afford their monthly payments.
Can Stupid Motorist Debt Be Cleared In Bankruptcy?
There are limitations on what types of debts can be cleared in bankruptcy. One factor here is the chapter of bankruptcy filed- chapter 7 bankruptcy only clears unsecured non-priority debts, but chapter 13 debtors can use bankruptcy to address a wider variety of debts. Other types of statutorily-imposed debts, like debts from a DUI crash or restitution, are entirely non-dischargeable in bankruptcy. A.R.S. § 28-910 does not designate the debt from reimbursing emergency responders after driving into a flood zone as priority debt. This indicates that it can be discharged in either a chapter 7 or chapter 13 bankruptcy filing. However, this debt will be treated somewhat differently with these two separate forms of bankruptcy.
Chapter 7 bankruptcy is the most common form of consumer bankruptcy. It is a fast and effective process, but only clears unsecured non-priority debt. This can be helpful for someone struggling with credit card debt, medical bills, etc. But it won’t be as helpful if the debtor needs to catch up on their house or car payments to stop a repossession or foreclosure. This is where chapter 13 is more useful- it is a payment plan bankruptcy that pays off secured and priority debts first, and unsecured debts only to the extent possible given the debtor’s disposable monthly income. There are also strict income limitations for chapter 7 bankruptcy that leave chapter 13 as the only bankruptcy option for higher earners. Want to review your situation with a professional to see which chapter of bankruptcy is right for you? Schedule your free consultation with Atlas Bankruptcy Lawyers today at 602-649-4949.
Driving Disaster Got You In Deep Debt? Start Your Bankruptcy Journey Today.
Just a quick lapse in judgment can create a lifetime’s worth of debt. If you’re struggling financially after experiencing flood damage to your vehicle or any other unexpected emergency, bankruptcy provides a safety net to protect your assets from creditors. It also provides a path towards freedom from the stress and burdens that debt can cause. But the process is smoother when you file ahead of your creditors, rather than when they already have you in a vulnerable position. The sooner you begin planning your bankruptcy filing, the more control you have over your case’s outcome. Want to discuss your potential case with an experienced Arizona bankruptcy professional? Our office offers free phone consultations to get the bankruptcy process started, risk-free. Confirm your eligibility and see if you’re qualified for our Zero Down post-filing payment plan option. Schedule your free phone consultation with Atlas Bankruptcy Lawyers today by calling 602-649-4949.
