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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I had a co-ownership in a car with my daughter. I filed bankruptcy

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I had a co-ownership in a car with my daughter. I filed bankruptcy (due to a divorce and financial hardship) and it was discharged in 4/07. My daughter's car was suppossed to be turned in due to the bankruptcy and my inability to pay (she could not pay either), but she ran away from home and took the car to NY. Her license was suspended due to failure to pay a traffic ticket and tags had expired and her insurance lapsed due to non-payment. She was in a car accident in 10/07. The other party had uninsured motorist coverage that had to pay for the damage of their car. My daughter's car was impounded and since taken back by the lender. The lender has not tried to collect the deficiency balance from me due to the bankruptcy but the insurance company of the other driver is trying to sue me for the repairs to the other party's car. I have been unemployed since 6/30/09 and am bearly surviving on unemployment so I am still in great financial hardship (I also have a 11 year old son). They are threatening to suspend my license in Florida if I don't pay the $6,000 claim. They are being very harassing. Can they really suspend my license in Florida for an accident that my daughter was involved in in NY? It seems that would only make matters worse as then, without transportation, I surely would not be able to get a job. My daughter asked for a settlement but they won't budge. Should I be concerned about the threats to suspend?

Thank you for your question.

The insurance company is attempting to collect the money that it paid out for the uninsured motorist coverage. This is called a right of subrogation.

You will want to look back on your bankruptcy petition to determine whether you indicated that you were surrendering your vehicle in your statement of intentions.If so, it would appear that your ownership interest in the vehicle terminated with the bankruptcy. You will need to retain counsel with bankruptcy experience to represent you to avoid the loss of your license
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Customer: replied 7 years ago.
In the BK stmt of intention, the co-owned automobile is listed as leased (it was actually owned). It states that the lease will be assumed pursuant to 11 USC 362H1A. What does this mean?

Thank you for the accept and bonus.

When a lease is "assumed" it means that the lessor is agreeing to continue the lease according to the lease terms and thus reincurs the liability under the lease. Since you did not lease the vehicle, there is obviously an error on your petition. Quite frankly, this error will likely cost more in attorneys fees and court costs to correct than the offered settlements of $1000.
Customer: replied 7 years ago.

Thanks again. The settlement offer was actually $5,000, they only agreed to reduce by $1,000. I don't have the money to pay them, the best I could do is go on a payment plan. Do you think that is my best route at this time .... I mean rather than paying attorney fees to try to fight the issue ... it seems only to lose? I just can not afford to have my license suspended and am scared they will do it. Thanks so much for your promt responses. I feel like I'm ready to have a nervous breakdown or put a hit on my daughter (kidding) but know that will not get me anywhere.

unfortunately I think that your best route would be to set up the payment plan for the $4000 or $5000. once the payment plan is agreed to, consider bringing the paperwork to your prior bankruptcy counsel and request that he review it in light of the error on the bankruptcy petition. Hopefully he will do this at no charge to you
Customer: replied 7 years ago.

Thank you, XXXXX XXXXX totally satisfied and pleased with your very thorough answers. Have a wonderful day!!

thank you very much. Have a wonderful day
Ellen and other Bankruptcy Law Specialists are ready to help you