what happens after settling an auto case and you still have unpaid bills?

Why did your daughter agree to settle?

they she made a bad error and has to just pay these bills out of her own pocket.

Sounds like a poor attorney that wanted his share of the money.

If the niece didn't sign off on the settlement, then she can put a claim in against your daughter's insurer.

Unless Scott the daughter signed this was the settlement of all claims and that she would be liable for claims of the niece.

Also if her hospital or medial insurance paid anything toward treatment, and the liability of another driver paid, they may even want to be paid back

The niece can put a claim against the daughter's insurer, but it will raise the cost of the insurance for the daughter. I don't understand why she did not hire representation.

As for the daughter and the 25 grand... Was her settlement for strictly the 25 grand or for 25 + medical. If it was for the 25 only, she is going to have to pay out-of-pocket for the medical.

Sounds like he was not a very good attorney and someone got confused in agreeing to settle so easily. I had an accident and my attorney fought for me. Got my bills paid plus extra. Not once did I have to worry that medical and expenses would be unpaid. It sounds like your lawyer just wanted the easy way out.

I don't know where this was BUT I'm a liability investigator in NY and the niece/passenger is totally innocent. She can claim against both drivers. I work cases on a fairly regular basis where it is claimed the car is stolen - usually after the accident. Someone should have looked for proof that it was or wasn't. I don't see that that happened.

Depending on the time frame and circumstances the niece might still be able to file a claim.

I can't tell if the niece's claim against the other driver settled. If the niece is under age the niece's parents were responsible of filing a claim, settling a claim - the aunt who was driving has no legal standing as far as settling the claim of the niece.

I see that the niece was foolish to settle. What were the circumstances of the accident? Yes, there are attorneys who will sell short (settle for less than the value of the accident) because there's little insurance, both parties were at fault, something else - but with the Bar Association taking a long, hard look at settlements I see almost none who settle just to get their percentage early in the game.

Need more information in order to have a better idea of what happened here.