Q: i rear ended someone in MD and i was uninsured back in oct/2020 and the insurance company is trying to subrogate
the insurance company is trying to subrogate against me for almost 20k and are not willing to work out payment plans under $900+ per month, which i’m unable to afford. Also, the other driver was my neighbor at the time and he only had his bumper and tailgate replaced as a result of the accident, the 20k is the full value to rebuy his car. i’m 21, i work 40 hours a week and make around 32k/yr. what can i do to be able to affordably pay this without losing my license which is the only way i can get back and fourth to work? and i have no assets, my newer current car is still under lease.
A: Bankruptcy. Talk to a bankruptcy attorney. You may qualify for a full discharge under Chapter 7 or a 3-5 year payment plan for a portion of the debt with small payments under a Chapter 13, and then discharge the balance. If the insurance company hasn't obtained a court judgment against you yet, then they can't do anything at the moment, so maybe you can use the threat of bankruptcy to negotiate a settlement for less than the full amount owed and a more reasonable payment plan; otherwise, they get little or nothing in bankruptcy. Sounds like they are suing you for the amount of pain and suffering and medical bills they paid out, not just the property damage.
Scott Scherr agrees with this answer
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