Legal Question in Credit and Debt Law in Virginia

Car Insurance threatens to sue me when I am making payments!!
Last year I was involved in a car accident which I did not have car insurance. The accident was totally me fault and I accept full responsibly. The total damages costed me $5404. But here's the problem, they want me to make a MINIMUM of $200 a month when I simply can not afford that! I am a single parent so I am responsible to pay ALL my bills by myself. I struggle everyday. I live paycheck to paycheck and I am unable to save any money at all. I have however been able to make minimum payments every month of $50 which is all that I can afford for the past 6 months but they just sent me a letter yesterday stating that if I dont pay them the TOTAL amount due or make higher payments a month they are going to sue me!!!!!!! This does not seem fair at all! After all I have not missed one single payment!

Asked on 10/12/07, 8:06 am

2 Answers from Attorneys

Ruth Emily Kochard Ruth Emily Kochard, Counselor at Law

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Re: Car Insurance threatens to sue me when I am making payments!!

If you have no defense to the debt the creditor could call the whole debt due at any time. I would suggest that you try and work out an acceptable amount to pay per month. If that doesnot work you may need to consider bankruptcy; if you are judgment proof, you should emphasize that as well with the creditor, since if you have a judgment that cannot be collected (enforced) your monthly payment would be more acceptable. If however you do have assets you may need to consider bankruptcy and I would suggest that you speak with an attorney that handles bankruptcy to determine if this is the right option.

Answered on 10/12/07, 9:27 am

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