auto accident, uninsured

[bunnyjo]

my son was in an accident in oregon. he has no insurence and he was sited for driving uninsured. now here is the real problem. his car was financed, so i don't know how he didn't have insurence. the car is totaled, he was the only one involved. he owes 13,000 dollars on a piece of scrap medal. I want him to file bankrupcy, lose all his credit and start over. should he call the bank and tell them, or wait 'till he gets a bankrupcy lawyer and let them tell the bank? please help.

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Arial, Helvetica, Verdana">quote:</font><HR>Originally posted by bunnyjo:
my son was in an accident in oregon. he has no insurence and he was sited for driving uninsured. now here is the real problem. his car was financed, so i don't know how he didn't have insurence. the car is totaled, he was the only one involved. he owes 13,000 dollars on a piece of scrap medal. I want him to file bankrupcy, lose all his credit and start over. should he call the bank and tell them, or wait 'till he gets a bankrupcy lawyer and let them tell the bank? please help.<HR></BLOCKQUOTE>


My response:

Due to the longevity of a Bankruptcy record on a person's credit history report, I would like to know the following:

1. What is your son's home State?

2. How old is your son?

3. What is your son's TOTAL debt load? e.g., the car loan, credit cards, personal loans, everything. And, tell me what TYPES of debts he has; e.g., are any of these loans education loans?

4. Is your son employed? What is his TOTAL income per year?

5. Does your son own or rent a home?

6. Is your son married?

Thank you for your anticipated reply.

IAAL

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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[bunnyjo]

In answer to your questions,
1. My son's home state is Oregon
2. He is 22 years old
3. His total debt load is $14,000
4. He is employed, Total income per year is $18,600
5. He rents a home for $500.00 per month
6. He is not married

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Arial, Helvetica, Verdana">quote:</font><HR>Originally posted by bunnyjo:
In answer to your questions,
1. My son's home state is Oregon
2. He is 22 years old
3. His total debt load is $14,000
4. He is employed, Total income per year is $18,600
5. He rents a home for $500.00 per month
6. He is not married<HR></BLOCKQUOTE>


My response:

Let's begin with the premise that a BK will stay on his credit history for 10 years. The effect of this, at such a young age, will be widespread - - affecting his ability to rent another residence, or to re-lease the place he currently has at time of renewal. His future jobs would most likely be affected, as most employers run credit checks on new employees. Obviously, from looking at his income to debt ratio, he didn't need this headache in the first place.

His age and his debt load are working against him. He hasn't enough debt, and at his age, he's just now starting to "make a mark" on this world, and his own personal world.

I would definitely NOT recommend BK, and have him continue paying the debt and to look for a better paying job. It's a hard pill to swallow, and a good learning lesson for a young person to get insurance, and to understand the meaning of paying premiums on something he can't see, feel or touch. I know the feeling. But, 4 years down the road, he'll thank me. Why? Because the vehicle loan will have been paid in full and, when he's 29, he won't have that BK looking over his shoulder, and stopping him from getting that job, or that new home, or the credit cards, or most everything else that's tied to one's credit rating. The other side of the coin is, rather than have a bad credit rating, after he pays for this loan, he'll have a WONDERFUL credit rating.

The "easy fix" is BK, but the hard part lasts for 10 years. Your son must look further than his nose.

IAAL

------------------
By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."



[This message has been edited by I AM ALWAYS LIABLE (edited July 30, 2000).]

 

[bunnyjo]

<BLOCKQUOTE><font size="1" face="Arial, Helvetica, Verdana">quote:</font><HR>Originally posted by mee:
Guess your son will have to learn to ride a BIKE or take public transportation for a while.... OR MOVE so he is near a bus line.

It sounds like he didnt hit anyone, and didnt get a ticket which is good.

But driving without insurance means he WILL have to get HIGH RISK sr 22 coverage for at least 3 years on top of paying the car loan off and the cost of a new used car.....

NO WAY on his low salary....

So get him to start looking at public transportation he really has no choice.
===========================================


<HR></BLOCKQUOTE>

I would have to agree with you about the public transportation except where we live that is not an option. there isn't any public transportation available. That is why I thought he should just get a little beater car to get to and from work. As far as his credit goes, I don't care if it does follow him for 10 years, he doesn't need credit anyway. when and if he gets a better paying job he will have to learn to budget and pay for what he wants up front.

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Arial, Helvetica, Verdana">quote:</font><HR>Originally posted by bunnyjo:
I would have to agree with you about the public transportation except where we live that is not an option. there isn't any public transportation available. That is why I thought he should just get a little beater car to get to and from work. As far as his credit goes, I don't care if it does follow him for 10 years, he doesn't need credit anyway. when and if he gets a better paying job he will have to learn to budget and pay for what he wants up front.<HR></BLOCKQUOTE>

My response:

Well, just don't say I didn't tell you so. Come time for renewing his residence lease, he'll be at your doorstep with his bags.

Good luck to him and you.

IAAL



------------------
By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[The Legal Shoppe]

Bunnyjo:

Most lenders (banks or otherwise) require insurance coverage on any vehicle for which they loan money to purchase. Most lenders require that they be named as additional insureds on collision or comprehensive insurance policies obtained by the borrower to protect the lender's interest. Most lenders will purchase insurance coverage called "lender's single interest insurance" to cover their interest in the event the borrower does not purchase insurance coverage or allows the insurance coverage to lapse or expire.

Check with the bank to determine if such coverage was purchased. The cost of this coverage should be your son's only responsibility to the bank. Also, be sure to read carefully the purchase agreement and loan documents to determine if this lender's single interest insurance coverage has already been paid for in the contract to purchase the vehicle.

When in doubt, contact your state or local bar association for referral to a free or low cost lawyer to help your son.

Good Luck! Don't let the bank bully your son.