Creditors and Bankruptcy/Help...


In 2009 I took a friends car (with permission) and ended up getting in a car accident and rear ending someone at a red light.  Unbeknownst to me, this friend had let her car insurance lapse and the vehicle was uninsured.  And now totaled (it was an old '92 car)  Nothing really came of the situation which I thought was fishy...I figured my friend had dealt with it.  On our end we worked out an agreement where I paid her the blue book value of her car.  The same year I relocated and fell out of touch with said friend.  Honestly hadn't thought of the situation in ages when out of the blue in 2012 I get a letter from a collection agency on behalf of nationwide insurance claiming I owe $6000.  What I should have done is disputed it then and there or AT LEAST tried to get in touch with the friend to see what we should do about this.  But me being stupid and intimidated by the wording of the letter, I called the collection agency and started making payments.  Forty dollars a month is all I could afford at the time but I figured it was better than nothing and I could just chip away at it.  Fast forward to today... 8/1/14 I am STILL dealing with this company.  I am now a mom of two one born in '13 another born in April '14... I have no income as I am a stay at home mom and my boyfriend supports us for now... My $6000 debt is now $6669.44 despite making my payments since 2012 because of interest.  I have recently stopped paying because I have no way to pay and I'm overwelmed at the thought that I haven't even started chipping away at the original $6000!  Now I wonder why I even took this on.  Am I responsible for this debt??  I'm guessing I claimed responsibility in 2012 when I agreed to make payments and I am kicking myself for not disputing it.  The company is threatening legal action, loss of license (not sure how they can do that?) I'm freaking out... I need to get this figured out.  What are my options?   What would happen if they take me to court?  Would they actually take me to court or just threaten it?  I am debt free aside from this but I have absolutely no way to make $6000 appear and cannot foresee when that will change anytime soon.

Hello Kristen:
Neither I nor anyone else can tell you what your options are at this point because you don't state enough facts in your question.    Was there a judgment, who is the collection agency collecting for, etc.      This would be easier to talk about on the telephone.  I will not charge you just to talk on the phone.   You can call me at the number below and I can then explain your options more completely at that point.

Jack Hall
915  261-3893

Creditors and Bankruptcy

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Can answer questions about bankruptcy, lawsuits or judgments that have been filed against you. Also can answer questions about tax issues, property that is facing foreclosure, repossession of vehicles, and wage garnishments. 915 261-3893


Over 30 years experience assisting consumers with lawsuits and bankruptcy matters since graduating from law school.

Numerous published appellate court opinions; Law review publications; Article on consumer bankruptcy in Black Enterprise magazine; was requested to author a book on consumer bankruptcy by Doubleday Publishers

Over twenty years of education including law degree (J.D.); masters and bachelors degrees in political science; author of magazine articles related to consumer bankruptcy; hundreds of hours of continuing education legal education and seminars

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Have had well over a thousand bankruptcy clients during the past 30 years and have had many clients in civil lawsuits during the same time period

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