• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

auto accident

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

S

stepdadda

Guest
car accident/ lease/ no insurance

I was recently involved in a car accident in which I was found to be at fault. Due to financial restraints, I was uninsured at the time. To make things worse, I was driving a car leased under my name. Not possessing insurance violates my lease as well as California law. I am in quite a bind now, because the estimated damage to my car is over $11, 000. I obviously cannot afford this. However, the leasee has not found out about the accident and I continue to make the monthly payment. I have not found anyway to get my car fixed prior to the end of my lease( about 18 months). I do not want to simply delay the inevitable. I would rather stop wasting money and "face the musice." I have neither assets nor money that can recover the loss of damage to the leasee's car. What will the leasee(Ford) do once and if I notify them? What are the consequences I face? How and what can they pursue to recover the loss from myself? Please advise.

[Edited by stepdadda on 01-12-2001 at 12:26 PM]
 


I AM ALWAYS LIABLE

Senior Member
My response:

Please help us to help you. To help us, please take your Cap Lock off and re-type your post. This will help to increase your chances for a response to your post. We thank you for your kind cooperation.

IAAL
 

I AM ALWAYS LIABLE

Senior Member
My response:

They will sue you. They will win. They will obtain a judgment against you. A judgment is good for 10 years, and then renewable for another 10 years. During that time, they will have your wages garnished. But, during that 20 years, they will get their money - - which will include the cost of the damages, attorney fees, interest, court costs, etc., etc., etc. The debt will mushroom from $11K to around $20 to $23K, when all is said and done.

IAAL
 

racer72

Senior Member
There is a way out. Tell the leasing company what happened. Return what is left of the car. Make arrangements to pay back the full amount. But make sure the outstanding balance is considered as an unsecured loan. Do not sign any collatoral agreement. Then comes what a lot of folks consider the distasteful part. File for bankruptcy. Go for the chapter 7, not the chapter 11. Have the full amount dismissed. Don't get tied down for years paying off something you do not have. Some people consider this the chicken s*** way out but they don't call it a "new beginning" for nothing. I was forced into bankrupcy 5 years ago after my mother in law tied my wife and I down for 2 years while she lost her battle with cancer. I have more than made up for what was lost.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top