To file or not to file... that is the question (Bankruptcy)
I got a letter from Nationwide General Insurance that I'm being sued for $35,000 for an automobile accident I was in a year ago (and at the time I didn't have insurance). I am eligible to file a chapter 7, but I don't want to screw up my good credit! And I have less than $2,000 in debt, so it really is a bummer to have to file the bankruptcy and screw up the next 7-10 years of credit.
I don't even know all of the negative effects filing a bankruptcy could have on me. I already bought my house, so that's no problem- I'll keep it and continue my payments- and my car is paid for, that will hopefully last me a couple more years. I refuse to pay an insurance company $35k, so filing seems to be my only option.
Anyone have any other insight?
i had a simlar situation. i was involved in an accident and at t
i had a simlar situation. i was involved in an accident and at the time didnt have insurance. i tried to make arrangments with the insurance company but eventually defaulted on the payments. within about a year or so they sent the account to an attorney who ended up getting a judgment and my drivers license got suspended. at that time i had moved to a diffrent state, so when my dl got suspended it carried over to the new state i was in and that license got suspended too. it was a huge mess. i was eventually able to start an installment agreement with them to get my licese reinstated. but the thing was in order to reinstate my az license i had to reinstate my mo license, even though i didnt live there, i had to get ins in mo and az, and file an sr22 in both states, i had to carry insurance in mo for a year, even though i lived in az. it was a lession learned. luckily i only owe them a few hundred and will have it paid off soon, so i can put that chapter of my life behind me. my accident was back in 2001, its now 2009 and i'm ready to be done with it. hope my story helps you in your situation. depending on your situation i dont know if the same things will happen, but 35k will not go away anytime soon.
I would wait until after the court action. They may lose, and y
I would wait until after the court action. They may lose, and you would not have to file. If they win, then you could file, and the judgment would be discharged. Filing prematurely could be a mistake.
Submitted by southernapostolic on Thu, 08/27/2009 - 19:57
dido! i too would wait it out. but i would get some counseling w
dido! i too would wait it out. but i would get some counseling with a good attorney though to know your rights and to represent you in court. filing bk could be a mistake if they decide to not follow through with thier actions which alot of companies do being overwhelmed by all thier own debts and people that may owe them more than you do. good luck to you!