Am I still responsible for debt if case was dismissed with prejudice?

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Am I still responsible for debt if case was dismissed with prejudice?

I was involved in an accident 3 years ago while driving my girlfriend’s car. I did not have insurance at the time and she only had liability. Damages exceeded her policy limits, so the other insurance wanted me to pay the difference. I signed an affidavit with her insurance stating I was out of work and couldn’t afford to pay anything. Fast forward to 10 months ago and her insurance company notified us that the case had been settled with a full release and dismissed with prejudice. Last week, I received a letter from a debt collector saying I owe $6000 from this accident. Is this debt valid? I really have no idea what being

Asked on March 16, 2016 under Accident Law, California

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

When the case was settled, a release was signed which meant that the parties gave up their claims in exchange for the settlement.  Since the case was dismissed with prejudice, that means that the case cannot be reinstated.
Therefore, you don't owe $6000 and the letter from the debt collector is a mistake.  


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