From your question I assume that you were uninsured at the time of the crash. That said, the collection agency can say whatever they want to, but in the end they have to prove everything was related to the crash to collect. If they sent you a bill then demand an itemization and ask why the charges are related to the crash.
You may want to talk with a bankruptcy attorney but without a judgment against you it may be too early to file for bankruptcy.
DISCLAIMER: David J. McCormick is licensed to practice law in the State of Wisconsin and this answer is being provided for informational purposes only because the laws of your jurisdiction may differ. This answer based on general legal principles and is not intended for the purpose of providing specific legal advice or opinions. Under no circumstances does this answer constitute the establishment of an attorney-client relationship.
Being involved in an uninsured accident is possibly one of the best reasons to file bankruptcy. If you do nothing, the opposing driver (or insurer) can have your driver's license and vehicle registrations suspended if you do not post a cash deposit in the amount of their estimated damages, lost wages and medical bills. However, a chapter filing early in the process will prevent the license loss or, if you were already revoked, allow you to reinstate, assuming that you were not driving drunk at the time of the accident. You should therefore promptly protect yourself by consulting with an experienced bankruptcy lawyer. Such a lawyer can also assist you in negotiations if you prefer that route, or defend the claim, but that usually costs far more than the bankruptcy with far more uncertain results. Please do not assume that I am your attorney because of my response here. Call my office in Racine (262-633-3090 or email firstname.lastname@example.org) for clarifications, but short of such additional arrangements, I will not be taking any action on your case. See me on the web at www.jayknixonlaw.com. View over fifteen years of my past answers at http://www.lawguru.com/answers/search/attorney/jknixon. Answers may contain attorney advertising materials.
My answer here does mean that I am representing you, so be sure to consult your own attorney before deciding on what you should do, or contact my office at 262-633-3090, 333 Main St, Racine, WI 53403, during business hours if you desire formal representation. See me on the web at www.jayknixonlaw.com, or view over 15 years of my previous answers at http://www.lawguru.com/answers/atty_profile/view_attorney_profile/jknixonAttorney answers may contain advertising materials.
Bankruptcy will destroy your credit for years, and a local lawyer could work out a payment plan that you can afford and save your license and credit. Make sense?
Car accidents resulting in severe damages and injuries can leave the at fault party with a significant liability. Some types are car accident cases are not dischargeable. Whether the debt qualifies to be written off is not a question for the car accident attorneys on this forum.
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You should consult a bankruptcy attorney to determine whether you qualify for a chapter 7 & whether it's worthwhile before your driver's license is suspended. It can take a bit of time to get it back, even after filing bankruptcy.
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