Car wreck, no insurance, does debt stay with you?

[LindaP777]

What is the name of your state? OHIO

I have a tenant who would like to buy a house from me, but she has problems with her credit. Here's her story; years ago, (I think she was 18 at the time), she had a car with insurance. Her boyfriend took the car (not sure if he had her permission) and wrecked into someone else. He had no insurance and because he was not listed on her policy, her insurance refused to pay for the damage he caused. The other insurance company paid for the damage to their customers car, but are holding my tenant personally responsible (it was her car) for $10,000.

QUESTION; Does that debt stay with her forever? Or does it drop off after a few years?

 

[Zigner]

years ago

The question of the day is: How many "years ago?"

Also, if she has a judgment against her, it could stay there a long, long time.

 

[justalayman]

first, I'm not a big insurance book of knowledge but I do know that my policy, and I believe most, will cover a casual driver of anothers car unless they were specifically exluded or if the policy specifically was restrictive in that aspect.

2nd, an insurance company can claim all they want but that does not mean the debt is just or true.

3rd, depending upon permission and other factors, it could make a difference to her liability. If he did not have permission, he committed a criminal act and unless the girl was somehow negligent or allowing of the use, she would not be liable.


Bottom line, if there wasn't a judgement against her, she can defend agaionst the claim. Depending on how long ago this is, the statute of limitations could come into play.
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So, to the basic question;

does the debt last forever, yes, or at least until paid. (and no, I'm not looking for an arguement. a debt is a debt until it is paid whether it is collectable or not)

Is it collectable forever; no.

Is it reported forever on her credit report; no.

Until she accepts the debt or a judge awards a judgement, all there is is the claim against her. THAT is not a debt; it is only a claim of debt.

 

[LindaP777]

I will try to fine out exactly how long ago, but I believe she said there was a judgement against her. She said she had her credit pulled awhile back and it was on the credit report. If/when I get more details, I'll post.

Thanks for your answers!