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
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.