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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2875
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I have been sued from a car accident i was at fault for last

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I have been sued from a car accident i was at fault for last year. The amount is over $30,000. Since i had let my insurance lapse im paying this out of pocket. We went to court last month, which really just consisted of me talking to their lawyer and setting up a payment plan. Im expected to pay $100 a month. I realize this isn't much but im a full time student and don't want to pay on this forever. I also had my license revoked so that's been pretty costly for me as well. Is there any other options for ridding my debt besides bankruptcy? Is bankruptcy even an option for this type of situation?

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

Yes, as long as you didn't intentionally cause the accident, and there was no personal injury with a DUI/DWI then this type of debt is dischargeable in a bankruptcy case.

Terry L. :

Once it gets this far, if you don't pay, they will garnish wages/freeze your bank account/put a lien on your home if you have one.

Terry L. :

Ch7 Bankruptcy discharges the debt and gets you a fresh start in about 90 days to get you back on track again.

Terry L. :

Let me know if you have any questions. thanks!

Terry L. :

Terry

Customer:

No, the accident wasn't intentional and i did not have a DUI or DWI. I was hoping you would give me more information on a different option other than bankruptcy, if there is one. Also, will i still be responsible for any of the debt if i did decide to file bankruptcy or will the full amount be discharged. Again bankruptcy is a last resort option for me so i would like to know if there is a better option. Thanks.

Terry L. :

Well, it sounds like you have 4 choices. 1. pay as agreed. 2. enter into a debt settlement agreement with them, (if they agree to it) to pay a lump sum. The amount they forgive would be taxable as income to you. 3. Enter into a debt consolidation if you have other debts. 4. Bankruptcy.

Terry L. :

They do not have to agree to take less, so you don't have many options. If you don't pay, they will garnish wages, freeze bank accounts etc etc.

Terry L. :

Let me know if you have any other questions.

Terry L. :

thanks

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