If I am being sued for subrogation, what happens if I have no assets or money?

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If I am being sued for subrogation, what happens if I have no assets or money?

I am on disability without any extra income to afford paying back anything to the insurance company. I had an uninsured vehicle and my passenger was hurt. It was the other vehicle that ran a red light into my vehicle. I am unsure where they would get any money if I have nothing.

Asked on October 30, 2015 under Bankruptcy Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

They can get a judgment against you IF you were at fault: if the other vehicle was at fault, they should not be able to recover money from you, because liability in auto accidents depends on fault. To win, they would have to prove in court that you were at fault in causing the accident. If they can't do that, you would win.
If they do get a judgment against you, if your only income is disability, you should be effectively "collection proof": SSI disability and state disability cannot be garnished, or have a portion of the payments diverted to, your creditor (including judgment creditors). (Caution: once the money is in the bank, however, it's far game to be levied upon; don't keep too much of a bank balance if you can help it). 
There's no harm in speaking with a bankruptcy attorney, but bankruptcy doesn't work against the vast majority of school debt, and, as stated, your disability income should be safe from garnishment; bankruptcy may not actually help you.


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