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  1. #1
    Join Date
    Nov 2013
    Posts
    2

    Default In Debt Due to a Non-Dischargeable Personal Injury Judgment

    My question involves collection proceedings in the State of: Arizona

    My situation is a complicated one. In a nutshell, 10 years ago I was a college student in the state of Arizona, and was involved in a car accident during a(unbeknownst to me) short lapse in my insurance. I was sued by the other driver's insurance company for a sum of just under $45k(There was judgment passed against me, and while the case goes deeper than what I've shared, that doesn't affect the answer I'm seeking. Also, due to the nature of my offense, bankruptcy is not an option for satisfying this debt.)

    Long story short, I was given a class 5 Felony which has been hindering my ability for advancement in the automotive industry(I've been working in small independent shops on account of this). I have since moved back to my home in Oregon, and have been paying very small increments($50/monthly) on the amount due for the past 9 years in order to keep them off my back and keep my license from being suspended.I am interested in 1)getting this debt handled, 2)trying to get the felony expunged from my record, and 3)moving on with my life.
    I have a family member who has offered to sponsor a lump sum toward this debt, but it is only about half of the remaining amount(the current balance is $39k). I have tried researching to see if since insurance companies will typically take lump sum settlements, how low of an amount they will typically take. I have come up with hardly any helpful or conclusive answers at all. Before I approach them with an offer, I'd like to have a good idea of what to expect to pay(which will be done through the lawfirm who is representing them and collecting the debt), so that I'm not going in completely blind, and offering too low and thus insulting them or incurring any sort of undesirable outcome.

    This has been a thorn in my side for the past decade, and I want to get it behind me and move on. Thank you for your time.

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Looking for Quick Solution to Long Term Debt

    I do not see they have any reason to accept less than the full judgment unless you offer a paid in full amount.

  3. #3
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Looking for Quick Solution to Long Term Debt

    Quote Quoting Disagreeable
    View Post
    I do not see they have any reason to accept less than the full judgment unless you offer a paid in full amount.
    Oh come on Disagreeable...that was a silly response. Its highly likely that the creditor would consider a lump sum payment rather than 50 bucks a month for the rest of the OP's life.

  4. #4
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Looking for Quick Solution to Long Term Debt

    Its highly likely that the creditor would consider a lump sum payment rather than 50 bucks a month for the rest of the OP's life.
    Depends on the creditor, really. Some will, some won't. But that's neither here nor there.

    OP, you can certainly make an offer. The reason that you're not finding any information about how high of an offer to make is because some creditors will not entertain the notion of anything less than the full amount, particularly once they've obtained a judgement against you.

    The worst that can happen is that they say No. There's no harm in asking, but do understand that they aren't legally obligated to accept even a penny less than what they are due.

  5. #5
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Looking for Quick Solution to Long Term Debt

    That's the biggest problem - they already have the judgement, and that can last an awfully long time.

  6. #6
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Looking for Quick Solution to Long Term Debt

    Yeah, judgments are renewable, typically for ten years at a time.

  7. #7
    Join Date
    Nov 2013
    Posts
    2

    Default Re: Looking for Quick Solution to Long Term Debt

    Quote Quoting llworking
    View Post
    Its highly likely that the creditor would consider a lump sum payment rather than 50 bucks a month for the rest of the OP's life.
    These are along the lines I was thinking. I could pay $50 monthly for the next 60 years and still not pay it off completely. It seems like due to inflation, the rise and fall of commerce, other factors, etc.. it would be in the interest of the company to get their hands on a decent amount of money while the amount is of value. I'm sure that with the economy in it's current state, alot of companies are having difficulty gathering ANY amount of money from debtors, so an offer to settle in a lump sum could possibly be a bit of a breath of fresh air. Perhaps I'm wrong.

    I'm not trying to justify paying a lesser amount, because if I had the means to do so, I would gladly pay the full amount. However, having this on my record has been a boot holding my head to the cold earth since it's occurrence. Therefore, I haven't been able to work for a decent wage in order to obtain the means to do much more than pay the small amount per month. Catch 22. Just like many other people, I'm trying to keep my head above water, pay my bills and make good on my debts, too. I am in no way trying to sleaze my way out of what is just; just trying to make it.

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