i was in a car accident a few months ago, long story short car is totalled i still owe 16,000 on it and i've been contacting the bank that the car loan is through and i don't know if what they are saying is true, threats, or what. I don't know what my best option is, because of the accident over 20,000 in hospital bills the month our medical insurance was being switched over, & one less person working due to lack of transportation. Basically I cannot afford to pay the regular payment $330 a month and I don't know if we should file bankruptcy, let it get taken to court and see what we're ordered to pay, or try and settle with the bank for a smaller amount, so if anyone has any advice or answers I would greatly appreciate it. thank you!
I'm slightly confused.
If the being sued over the car accident (by the other driver), from the hospital bills that you owe, or from the bank for the car?
The court will order you to pay what you actually owe if sued on the 2nd of the 2 items, if it's over the accident, it will most likely be more than damages to cover pain and suffering if there were personal injuries and you were at fault.
As to if you should file bankruptcy: depends on what your total situation is, debt to income, total bills and what assets do you own.
I usually either sit down with my clients and crunch numbers with them or have them crunch the #'s themselves. If you are to the point that you can't pay the bills and won't be able to in the reasonable future than bankruptcy can be an option - especially if it helps relieve the stress and makes it so you can put food back on the table.
With more information I could provide a better answer.
I agree with Mr. Williamson's answer.
Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.
More information is needed on what the nature of your debts are. Some types of car accidents, such as when driving under the influence, are not dischargeable in bankruptcy.
See a bankruptcy attorney ASAP to go over all your details!
Attorney Brian Pedigo is licensed to practice law in California and is located in Southern California (Orange County, Inland Empire - see www.PedigoLaw.com). His response here does not constitute legal advice and does not create an attorney / client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. You are strongly advised to confer with an attorney in your own state to acquire more information about the specifics of your case.