Subrogation and License Suspension: Need Advice
I posted yesterday about an issue I’m facing, which you can find in my history. My child’s father was driving a car registered in my name without insurance and got into an accident. Over the weekend, I found a letter dated January 31, 2025, regarding subrogation that states the state might suspend my license due to $5.7k in damages owed. The letter didn’t clarify who is responsible for payment, but since I’m the registered owner, I believe it falls on me. I called them today for clarification, but the representative was rude and unhelpful, leaving me with some pressing questions:
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When I asked who is liable for the payment, the representative said both of us and mentioned, “the state doesn’t care who pays as long as it’s paid.” If a judgment is placed against us, will it affect both of our credit reports?
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I inquired about what happens if I can’t pay, and she said it goes back to the insurance company, which is State Farm, and they will determine the next steps. I’ve read that they typically sue. If that happens, what is the process? Can I defend myself by stating that I wasn’t the driver and shift responsibility to him?
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If a judgment is placed and later paid off, will that still appear on my credit report?
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As of today, February 24, 2025, my license hasn’t been suspended yet. How long can I expect before that happens?
I understand I can’t avoid this situation, but I’m trying to figure out the best way to handle it given my financial constraints. I have no assets, rely on food stamps, and currently have $4k in credit card debt. The representative suggested I could pay the total in full for $4.7k, but I still can’t afford it, especially since a payment plan would require a $1.4k down payment along with monthly payments that I can’t manage.
What are my best options here? Should I wait for them to sue me? Will my license be suspended in the meantime? If I am sued, will I still have the chance to set up a payment plan? Any advice would be greatly appreciated!
I’m sorry to hear about your situation; it sounds really challenging. Here are some thoughts and suggestions that might help you navigate this:
Liability for Payment: Since the letter indicated that both you and the driver (the child’s father) are responsible for the damages, it’s likely that both of you could have judgments placed on your credit reports. If they pursue payment from both of you and don’t specify who is liable, it could impact both of your credit scores.
Potential Lawsuit: If the case goes to the insurance company and they decide to sue, they may pursue a judgment against you. Defending yourself could be tricky, especially since you were the registered owner, but it’s worth discussing with a legal professional. A lawyer might be able to help you argue that the other party was driving the vehicle and could potentially shift some responsibility. You might qualify for legal aid based on your financial situation.
Judgment Impact on Credit: If a judgment is entered against you and later satisfied (paid off), it may still appear on your credit report. Judgments can stay on credit reports for up to seven years, even if they are paid off. This can affect your creditworthiness in the future.
License Suspension Timeline: The timing of a license suspension notice can vary by state. Typically, you may receive a notice giving you time to address the payment or dispute it before any suspension occurs. It’s important to stay proactive about understanding the specific regulations in your state.
Options Moving Forward:
Seek Legal Advice: Many local legal aid organizations offer free consultations to individuals in financial distress. They might help you understand your rights and options better.
Negotiate: If you can only afford the down payment, see if the agency will allow you to negotiate terms that are manageable given your financial situation. Be upfront about your inability to pay higher amounts.
Document Everything: Keep a complete record of all communications with the agency and any correspondence you receive. This documentation may help you later if legal issues arise.
Discuss Financial Hardship: When speaking with them, emphasize your financial hardship. Some agencies may offer programs or plans for those who are struggling.
Consider Alternatives: If you haven’t done so already, explore other financial assistance programs that might provide relief or support in covering costs.
Ultimately, staying proactive and informed about your rights and options will be key in navigating this situation. Good luck, and I hope things get resolved for you soon!