i crashed. i had no auto insurance, no licence. i was sent into collection. what happens if i dont pay?

Question

I crashed into three cars and i had no insurance. I owed the insurance $14,000 since i did not pay i was sent into collection. I am down to $9,000. What would happen if i stopped paying it? I was 18 years old when this happened. What would happen if all they have is my name. they do not have my social security#.Whats the worst that could happen?

Answer 1

they will take everything they can from you ,and don't think they don't have your social security number ,because i bet they do,they can take any wages you earn until this is payed off,and most of the time they will do it also,you really need to settle this up somehow,because it wont ever end until you get it payed off,i went through it about 25 years ago because my insurance had ran out,its a real big thing to them now days collecting on this,they will not let it go,good luck with it.

Answer 2

1

Answer 3

Well, guess what, they do have your SS#, don't worry about that. There are programs out there that all is needed is your name & address & bingo, they have your SS#, so even if you didn't give it to them, they have it. Also, when it went to collections, they for sure had it because any debt that is sent to collections is on your credit report. Since the debt has gone to collections your credit is ruined for about 7 years. Now, if you stop paying, your license could be taken away, your wages will probably be garnished (your employer will have to deduct a certain amount every paycheck & pay the debt BEFORE you get your check), you will not get any loans during this time (no car loan, no credit cards, no mortgages) either. PAY this off!!! Once it is paid,, then & only then can you start repairing your credit. You will probably only get car loans at about 25% interest when everyone else is paying 5 or 6%, you still won't get a mortgage for years. Credit cards will be a ridiculous amount of interest too.
Depending on your state laws, your license could be suspended until you pay too.
I guess you are lucky you didn't injure anyone because you would owe a LOT more.
Anyway, I hope you have insurance now. If you had insurance then, you wouldn't be in this mess.

Answer 4

I own a subrogation vendor company that handles claims against uninsured motorists for insurance companies.

As Sue said they have your SS#. It takes less than 3 minutes to get it. So that theory is down the drain.

If you don't pay the collection agency will have one of their lawyers sue you (assuming the statute of limitations hasn't run yet). Once they sue you they will prove that you are responsible for the accident and the balance owed. The court will issue a judgment against you which will make things much worse for you.

The judgment will;

Be good for 20 years(in most states) or until you pay the debt.

add interest to the $9000, in most states up to 12% per year. Trust me you don't want that, it will turn that $9000 into a $10,000 the first year alone. Once the interest starts it will take forever to pay this off.

in most states it will get your drivers license revoked for 20 years or until you pay. Driving without a license gets really expensive if you get caught.

mean the judgment will lead to garnishment of your wages. Most of the time the garnishment amount wont cover much more than the interest which only puts you further in the hole.

lead to bad credit. The judgment will go on your credit report and you MIGHT be able to buy a car, but like Sue said the interest rate will be a killer. You most definitely won't be able to buy a house. I have Realtors contact about judgments against prospective buyers and they crap when I tell them that the judgment is 10 years old and the interest alone is more than $10,000.

I strongly urge you to find a way to resolve this without a judgment. If they don't get a judgment against you there is still a chance that your future won't be screwed up so badly by this whole thing.

Good Luck

Answer 5

My car was crashed into by an unlicenced driver who was drunk at the time and had no insurance because the car he was driving was stolen. My car was a total loss, although my insurance company replaced my car with a new car ( because the car was less than 12mnths old, and I was the first registered owner) I still had to fork out for a new insurance policy. The car that crashed into mine hit 2 other cars before slamming it into mine. I hope you don't pay the remaining $9000 and end up in gaol and lock you in a cell with big Bubba. Don't laugh I work with corrections and have come accross plenty of young people locked up in a maximum security centre for minor crimes. Oh thanks for the cost of insurance!

Answer 6

You can make payment arrangements. Tell them how much you can afford to pay a month and chances are they will accept it. If you don't have any assets it may be more cost effective not to file a law suit against you since they really have nothing to gain. It is up to the insurance company and how far they are willing to pursue you. They will notify the DMV and suspend your license.

Answer 7

Suspension or Revocation of your Driver License.

Their collection agency can go thru your DMV and tell them you were unisured "cause of an accident" and NOT Paying/and their attorney can request revocation of your license until you do pay. I had a friend that just went thru this in court.

Answer 8

They can sue you and get a judgement against you. With that, they can go after any assets you have, and also garnish your wages.

Until it is paid, that judgement would prevent you from getting any new credit, such as auto loans, mortgages, etc.

Sure they have more then your name. Your address at least.

Answer 9

They garnish your wages. Don't fool yourself thinking they only have your name. They have vast databases, and have EVERYTHING about you, even your new address.

Answer 10

ummm jail.....dont drop the soap man