If I just received a note in the mail that I’ve been sued over a car accident I had last summer in which I was not insured, is filing bankruptcy a viable option?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I just received a note in the mail that I’ve been sued over a car accident I had last summer in which I was not insured, is filing bankruptcy a viable option?

It’s for the sum of $7000. I just turned 21 and I’m living paycheck by paycheck and am making monthly payments on a lot of debts. I can’t possibly pay this anytime soon or even make any sort of sizable monthly payment on it. I’ve also been considering going into bankruptcy. What is my next step after receiving this notice What can they do to me if I don’t have the money to pay?

Asked on April 21, 2015 under Bankruptcy Law, Indiana

Answers:

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

Answered 8 years ago | Contributor

You were not properly served with the lawsuit if you just received a note in the mail.  You should have been served with the summons and complaint by a process server.  The summons states that you have been sued, identifies the parties and the court and the amount of time you have to file an answer to the complaint.  The complaint is the lawsuit.  If you are properly served and don't file a timely answer with the court and send a copy to the opposing party's attorney or the opposing party if no attorney, the plaintiff (party who filed the lawsuit) wins by default and files a default judgment against you.

Although you are planning on filing bankruptcy, you might want to pursue litigation to delay the end result of the plaintiff obtaining a judgment against you.  Until there is a judgment against you, the plaintiff won't be able to obtain any funds from you.  

Whether or not you pursue litigation, file bankruptcy when there is a court judgment against you.  You should file Chapter 7 bankruptcy which is straight liquidation that eliminates certain types of debts such as the judgment against you in the auto accident lawsuit.

If you don't file bankruptcy, the plaintiff can enforce the judgment with a wage garnishment.

Filing bankruptcy will prevent the plaintiff from obtaining a wage garnishment.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption