SecretNinja
Junior Member
What is the name of your state? CA
I don't believe this! I now have to write this post out again because I was not properly logged in.
Approximately six months ago I was involved in an auto accident, and the police determined I was at fault. They cited me for "unsafe speed" even though I was driving under the speed limit in ideal weather conditions. (There was unforseen traffic backed up ahead and I rear-ended the car in front of me.) Regardless, I paid the fine and attended traffic school.
Yesterday I received a letter from a collection agency claiming I owe nearly six-thousand dollars.
Here's the problem: I'm a twenty-three year-old attending graduate school and living with my parents. My father handles the financial aspects of auto insurance, and apparently in the six months before my car accident, I was driving uninsured. Our insurance company, which covered my car for years up to that point, has apparently washed its hands of this matter.
Here's the other thing: I have no assets to speak of. I cannot pay one-thousand dollars let alone nearly six thousand. The car that was legally mine in the accident has since been given to charity (and at the time it was worth less than 1 thousand dollars).
A few questions: Given the sum of the claim against me (nearly six thousand dollars), is the collection agency likely to file a lawsuit for failure of payment? Second, the notification I received in the mail requesting payment/reply within 30 days says that my license can be suspended. How likely is this in the state of California? Finally, I am starting a part-time job (technically I am currently employed). I understand that after a succesful lawsuit the company can garnish up to 20 percent of my wages. Can do this for decades?
My father has said that I can -- and probably should -- simply declare bankruptcy. I will not graduate for another 16 months. Currently I have no other oustanding loans or debts.
Any help is greatly appreciated.
I don't believe this! I now have to write this post out again because I was not properly logged in.
Approximately six months ago I was involved in an auto accident, and the police determined I was at fault. They cited me for "unsafe speed" even though I was driving under the speed limit in ideal weather conditions. (There was unforseen traffic backed up ahead and I rear-ended the car in front of me.) Regardless, I paid the fine and attended traffic school.
Yesterday I received a letter from a collection agency claiming I owe nearly six-thousand dollars.
Here's the problem: I'm a twenty-three year-old attending graduate school and living with my parents. My father handles the financial aspects of auto insurance, and apparently in the six months before my car accident, I was driving uninsured. Our insurance company, which covered my car for years up to that point, has apparently washed its hands of this matter.
Here's the other thing: I have no assets to speak of. I cannot pay one-thousand dollars let alone nearly six thousand. The car that was legally mine in the accident has since been given to charity (and at the time it was worth less than 1 thousand dollars).
A few questions: Given the sum of the claim against me (nearly six thousand dollars), is the collection agency likely to file a lawsuit for failure of payment? Second, the notification I received in the mail requesting payment/reply within 30 days says that my license can be suspended. How likely is this in the state of California? Finally, I am starting a part-time job (technically I am currently employed). I understand that after a succesful lawsuit the company can garnish up to 20 percent of my wages. Can do this for decades?
My father has said that I can -- and probably should -- simply declare bankruptcy. I will not graduate for another 16 months. Currently I have no other oustanding loans or debts.
Any help is greatly appreciated.