Can debt collector get your license suspended if you do pay?

Asked over 5 years ago - Los Angeles, CA

My daughter living in CA was in an accident which was her fault. She was driving without Insurance at the time, this occurred a year and half ago. Due to the accident she had to purchase SR 22 Insurance to get her license back. My daughter was seriously injured, broke neck, liver damage, head trauma. The other party had no physical injuries. The other party's Insurance company paid to have their auto fixed. My daughter received a letter from a debt collector (this is the first contact since the accident) They say if my daughter does not reimburse the other party's Insurance company for money paid to repair the other party's car they will have my daughter's license suspended again. There has been no judgement, nor court hearing involving the other party. my daughter just got her license back and does not want it suspended again, can a debt collector suspend her license while she is paying for a SR22 Insurance, if she does not pay them approx. $7000. the insurance co. paid to fix their insured person's car?My daughter has been unemployed since just before the accident and does not have money to pay this $7000. and I am on disability and can not afford to pay it either. There was no alcohol involved in the accident. Apparently the other party had uninsured motorist insurance, which paid for the damages. Does my daughter have to pay this money in order to keep her license from being suspended again?

Additional information

Sorry, I posted my additional info in the answers...again sorry, this is my first post.
I guess I should have given u more information. My daughter did not actually hit the car, this driver was driving. She hit another car, which in turn, hit the car in question. She has heard nothing from the driver of the car, she actually hit. As I said before, this happened a year and half ago. There has been no court hearing, nor any Judgements made concerning the accident, nor is there any pending action, and the collection agency did not mention anything about taking her to court. They only stated, that if she does not pay the $7000, the Insurance co. paid to fix the car, they will petition to have her license suspended. Can they do that? Can they have her license suspended unless she pays them?

Attorney answers (1)

  1. Jonathan Gregg Stein

    Contributor Level 11

    Answered . Thank you for your question and I look forward to assisting you. Please keep in mind that I can only respond to your post and the information contained in it, as I do not know what you know unless you have put all of the information in your question. Also, there may be future facts that are as yet undetermined in your matter, that can and must leave some areas of information provided by me broad in nature. However, don't hesitate to ask for clarification if needed! That being said...

    Yes and no. If someone gets a judgment against her for an auto accident, her license can be suspended until it is paid in full. She may want to consider filing for bankruptcy. That will discharge the debt and her license will not be suspended.



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