Opening a letter from an address that is not recognizable, you start reading what looks like a legal document that states that you are being sued for causing a car accident. What do you do now?

If you have car insurance, which I hope you do, then you are covered against suit that is brought on by the other party that was involved in the car accident.

If You Have Insurance

If you have insurance then the matter is simple. They will hire a lawyer for your and protect you up to the limit that your insurance policy covers, or the amount is used towards your defense. On your insurance, you have what is called a “Liability Policy” that covers bodily and personal property damages that the the insurance is willing to pay for.

The lawyers will first try to settle this by going back and forth on the amount that each think is fair and come to a settlement, since going to court is a time consuming and an expensive process. If they don’t settle, then you may have to go to court. Your insurance will want to pay out the least amount possible; therefore, have your and their interest in mind.

If You DO NOT Have Insurance

Then you have to pay the money for that you are being sued for. Thus, you may first want to hire a lawyer, and try to settle the case for the lowest and most reasonable amount. Your other option is to go to court and be at mercy of the jury. And if you do not have the money, then you’ll have to liquidate assets to pay the law suit, and/or file for bankruptcy.

You will want to speak to a lawyer first, because bankruptcy has to be done through a lawyer as well. There are somethings that don’t have to be liquidated or sold in order for you to continue to make a living so you do not end up homeless.