I had rented a car and allowed a friend to drive it. She totalled it and now I owe $16,000.
They were trying to sue me & this is what we worked out. We both signed confessions of judgement, and agreed to pay $100.00 a month--$50 each. She isn't paying her half and I cannot afford to pay the entire amount. If we don't live up to our end of the bargain, and the confession of judgement is turned in--What does that mean?
What will happen? Will it destroy my credit? Sounds like it also means that the court can then take any thing I ever acquire that is of value. Please help me understand. : ) Thank you.

The court will issue a judgement against you ( or both of you)

But at the end of the day, you had the contract with the car company and you will owe them. Any payment plan, if not followed will normally end with them getting a judgement ( unless they already have it)

Depending on where you live, they can garnish your wages, attach your bank account and so on

So, they really CAN take anything of value until the debt is satisfied. Would it be unusual or possible to renegotiate the monthly amount so it is more manageable? Also, I asked this question in the "me, mine" form but it's really about my daughter and her friend... was easier to write it that way. Just wanted you to know that since I see you around here so much! : )

How old is the daughter ? Since if she is under 18, they can come after you normally also.

But it is always OK to try and make a deal with them. But on a 16,000 dollar debt, I am surprised they even agreed to 100 a month, that is about as low as they will go. And is there interest being added to the amount ?

But with no interest at 100 a month it would be 160 months ( or over 13 years) to pay it off, if they are adding interest, the 100 a month may not even cover that,

So I doubt if they will accept less on any long term. And if they have researched the people who owe, and know they work, ( and live in a place where they can be garnished) they know they can get at least 25 percent of their paycheck so often have little desire to settle for a very low sum.

But.

There should be insurance on the car,
If they own a car most car insurance will cover a rented car
** not all policies but most do

She's 26, (so I'm $afe)... and it was my daughter that crashed the car... ugh. What a mess. This is quite serious. I will ask our friend if she had her own regular auto insurance at the time and see if there is anything in her policy about that. And again I say ugh! AND~thanks! : D

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Originally Posted by SabraTova

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They were trying to sue me & this is what we worked out. We both signed confessions of judgement, and agreed to pay $100.00 a month--$50 each. She isn't paying her half and I cannot afford to pay the entire amount. ...

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(The answers I am giving are all addressed to your daughter.)

If you don't think you can afford to pay $100 a month, you really can't afford to pay what they will be taking when they get a judgment.

Quote:

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Originally Posted by SabraTova

So, they really CAN take anything of value until the debt is satisfied. Would it be unusual or possible to renegotiate the monthly amount so it is more manageable?

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Realistically, why would they agree to less than $100 a month?

Do not default on the terms of the confession. That's by far the best deal you will have.

Agreed, and I will present it to her that way! Thank you very much.

Also not sure where you are at, but in many places, if you have a car wreck and don't pay for damages, they can suspend your drivers license till they are paid, ( or a payment plan agreed to)