What to do about a debt incurred if I was in an at-fault auto accident about 9 months ago and did not have insurance at the time?

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What to do about a debt incurred if I was in an at-fault auto accident about 9 months ago and did not have insurance at the time?

Now the attorney from the other party is trying collect a “debt” and says they can have my driving privileges suspended if I do not pay this debt. I’m not being sued and there were no damages to the vehicle with 2 witnesses. How can they have my license suspended over an attempt to collect a debt. I thought that would be a criminal matter that would have to go to court?

Asked on December 1, 2014 under Accident Law, Tennessee

Answers:

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

Answered 9 years ago | Contributor

Your driver's license won't be suspended for not paying a debt.  It could be suspended for driving without insurance.  Although the laws vary from state to state, the Department of Motor Vehicles can suspend a license for driving without insurance.

As for the debt, if you can't afford to pay it, you might want to consider filing bankruptcy.  If you are eligible to file Chapter 7  which is straight liquidation, this type of debt can be eliminated.

 

 


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