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LegalKnowledge
LegalKnowledge, Attorney
Category: Legal
Satisfied Customers: 23978
Experience:  9+ years handling Legal, Real Estate, Criminal Law, Family Law, Traffic matters.
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What do I need to do if I owe a lot of money on an insurance

Customer Question

What do I need to do if I owe a lot of money on an insurance claim for an accident where I am considered the at fault party, and the amount that I still owe after insurance is well above what I am worth financially? I am concerned that I will be working just to pay them everything I make and lose what little I actually own or go to jail. Is this a reasonable concern?
Submitted: 9 months ago.
Category: Legal
Expert:  LegalKnowledge replied 9 months ago.

Good evening. I certainly understand the situation and your concern. No, you will not go to jail for this. However, if you do not pay they will sue you and obtain a judgment. If the judgment is not paid, then they would try and garnish your wages or even go so far as try and get your licenses suspended, as a result of this.

A certain amount of your wages isexempt, or protected by law. You are allowed to keep disposable earnings (your pay after taxes and mandatory deductions) of at least:

  • $371.25 weekly
  • $742.50 bi-weekly (every other week)
  • $804.37 semi-monthly (twice a month)
  • $1608.75 monthly.

If your disposable earnings are less than the exempted amount, your wages cannot be garnished. If your disposable earnings are greater than the exempted amount, then your wages can be deducted by the lesser of:

  • 15% of your gross (before-tax) wages; or
  • the amount of your take-home pay (after-tax) wages that exceeds the exempted amount above.
Expert:  LegalKnowledge replied 9 months ago.

Please let me know if you have any follow up questions or need any clarification on something which I stated above. Also, remember to rate my service at the top of this page, before exiting the site, so I can receive credit for my help. I hope you found it to be Excellent! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two lower ratings to the left, please stop and reply to me. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.

Expert:  LegalKnowledge replied 9 months ago.

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!