What happens if you can’t pay the money the insurance company is trying to get from you?

I had an accident and my insurance is only covering $5000 of the $12,600 in damages. The other guy’s insurance company wants me to pay the $7600 balance. I was wondering what happens if I can’t pay it?

Asked on September 25, 2016 under Accident Law, Pennsylvania


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you can't pay the balance, the opposing party will sue you.  Your insurance company will provide you with an attorney at no cost to you to handle the case.
If the matter is not resolved and a court judgment is obtained against you, it would be advisable to file bankruptcy to stop a wage garnishment.  Wage garnishment may be used to enforce the judgment.  If you are eligible to file Chapter 7 bankruptcy which is straight liquidation, that debt can be eliminated.

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