Expert: Bennie719 - 8/26/2008

Question
I let my insurance expire due to some financial issues and planning to get a new policy on Friday. But unfortunately, I was in a car accident on Monday. I was making a left turn to get on the expressway and when I started turning there was no one coming in the oncoming lanes, but apparent the other drivers in the turn lane and decided to go straight after I started my turn. I was cited, failure to yeild. I have no insurance. I am terrorified as to what will happen to me. I hoping to be able to repay the driver's insurance company in monthly installlments. Do you think this possible? Will they garnish my wages? Nobody from the other car was taken to the hospital, but I was. I think my car will be totaled. I have only had the car 3 months. I know I will owe the finance company payment, right? Can I file bankruptcy, I think chapter 7 or 13 to clear these debts? Without ending up in jail?

Answer
Hi Vanessa,
Most insurance companies will allow you to enter into a settlement agreement and make reasonable monthly payments.  You need to discuss this issue with them.

Yes, you still owe the finance company for the balance owed on the car, but they may have added vendors single interest coverage which protects them for the balance owed, again, talk to the finance company.

I am not an attorney and can't give you any advise about bankruptcy.  You will need to discuss this issue with a bankruptcy attorney.

I hope that you find this information to be of help.
Your feedback by rating my answer will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area