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I was an uninsured driver and was at fault in an accident. The other driver’s insurance company is suing me and I have no assets
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I hit someone and didn’t have insurance. Over two years later I just got served with a lawsuit from the person i hit from their insurance company and they are suing me for $45,000. (Which seems excessive since it was a fender bender) I have no assets at all. Less than $1,000 in my bank account. I get state aid for food stamps and medical. I am also self employed and make $30,000 a year gross income and drive a beater car that’s worth $600 and yes I have insurance now thankfully. What can/should I do? Should I hire an attorney or can I explain to the car insurance company that I have nothing to give them and will file bankruptcy if they get a judgement since I already have a lot of previous debt and have been thinking about bankruptcy as a last resort anyway. Granted I don’t want to file bankruptcy if I can get around it. Do I absolutely need to hire an attorney? I appreciate any and all advice!
In addition to the possibility of a judgment of $45,000, you are in danger of having your driver's license suspended.
Your best bet from the facts stated in your question is to file Chapter 7.
Most Chicago lawyers (as ours) offer a free consultation.
Assuming you were not driving a vehicle under the influence of alcohol or drugs and not causing death or bodily injury then the debts would be dischargeable in a bankruptcy and you can obtain your license . But before you file a bankruptcy ask the creditor if they would settle for X$ whatever you may be able to pay. Tell them they can get that $ or zero if you have to file bankruptcy.
Your asking that question implies you have not called and discussed with an experienced bankruptcy attorney near you as you would or should know the answer to that question posted here on . Other facts and issues can gravely affect your case so I will point these out for you next some issues so you know you only need to do one thing now: call an attorney near you to discuss bankruptcy. You need and want to enjoy your fresh start also. But the most important thing is to meet with an attorney as you asking this question means you have not. You care about 2 goals: keeping everything you have equity in and discharging all your debts. If you don't have any of the exceptions to discharge you will obtain that goal; most exceptions are set forth in 11 USC. 523 (Google it) like child support, some income taxes, traffic (in a ch 7) and criminal fines , and presumption of student loans. But some debts are dischargeable in a ch 13 but NOT in a ch 7 so you want to make sure and your attorney will discuss any such types with you also!
Your exemptions depend on what state you have lived in in the last 2 years and thus if in your state, then your states exemptions will apply. Most persons filing keep everything they own but your attorney will confirm that with you when they learn everything you own and the equity thereof!
Some secured debts like homes, vehicles, other secured debts an attorney will discuss your options on also as you must list any debts; but that does not mean you will lose them unless you have too much equity or are in default on paying for them! Discuss those options if they apply with your attorney too.
But other issues can arise that can greatly harm your case. Just one example: If you paid back a relative $3,000 11 months ago and now file bankruptcy next week, the trustee can SUE that relative to retrieve that $3,000 (under what is called a preference) for the benefit of the bankruptcy estate. As a result, most attorneys don't charge to meet with them the first meeting so meet with one no matter what.
Many great attorneys can be found right here on in your state so look, call, and meet one as soon as you can.
You should also want to know when to file: is there an advantage of waiting versus filing now and who should you pay between now and then! Good luck and enjoy your later fresh start.
