I got into a car accident while driving my sister's car. Her car did not have insurance so the other insurance company sued both me and my s...

Question

I got into a car accident while driving my sister's car. Her car did not have insurance so the other insurance company sued both me and my sister. The judgment was against both my sister and I together not separate. The judgment has since gone to collections. I have been unemployed for 4 years but my sister has a very well paying job. She hired a lawyer to lower the amount owed and she paid $8,000 and was removed from the lawsuit. I was not apart and not aware of these negotiations but I am left with the $20,0000 balance. The lawsuit was completed in 2009, I thought no changes can be made at this point. Is that legal for her to be removed from the lawsuit after the judgment had already been made? If the collection agency made a deal with one party in the lawsuit does it apply to both parties? Any help would be greatly appreciated.

Answer

Liability on the judgment is joint and several which means it can be fully collected from one, the other or both judgment debtors (you and your sister). Since your sister settled then you remain liable for the balance of the judgment severally (alone!). You already benefitted from the settlement by having your debt reduced by the $8,000 your sister paid. In fact, your sister could have sued you for the $8,000 since you were the one that caused the accident. Your sister was only liable because of a technicality that makes the owner liable. It is your responsibility to drive while insured and it was her responsibility not to lend the vehicle to an uninsured driver. If you have not yet lost your license then it is possible for the judgment creditor to inform the DMV of the judgment and have your license suspended until you pay the balance of the judgment. Luckily you have an out: bankruptcy.