If I was involved in an auto accident 3 months ago and am now being held responsible for $9,000 in damages that I can’t afford to pay, what should I do?

I was an uninsured driver. I was cited with a “failure to yield” to oncoming traffic when I went to turn onto a road seeing the opposing driver had his turn signal on. My auto damage was listed as minor, but his was listed as severe. Now, at the end of February, I receive a letter from his auto insurance company seeking compensation of $9,000. I do not have this money. I am a low income, college student and single mother. Should I call his insurance company and ask about a payment plan? Should I attempt to file bankruptcy?

Asked on March 3, 2015 under Accident Law, Wisconsin


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

Answered 5 years ago | Contributor

Although you can call and inquire about a payment plan, it would be advisable to file bankruptcy instead.

Chapter 7 bankruptcy is straight liquidation which eliminates certain types of debts.  Filing Chapter 7 will eliminate this particular debt.

You can obtain the bankruptcy forms (schedules) from the bankruptcy court.  Your bankruptcy is effective upon filing it with the court.

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