What happens in a lawsuit that is asking for $10,000 and you don’t even make that a year?

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What happens in a lawsuit that is asking for $10,000 and you don’t even make that a year?

I had no insurance and was cited for failure to yield. The insurance company is sueing me for the damages.

Asked on May 14, 2012 under Accident Law, Arkansas

Answers:

Thomas Reilly / Albert W Chianese & Associates

Answered 9 years ago | Contributor

If you have been served with a complaint you must serve an answer denying all of the claims against you. If you do not answer the insurance company will get a judgement against you. If they get a judgement they may be able to freeze your bank accounts and garnish your wages until the judgment is paid off. The judgment may cause difficulties in the future if you want to purchase a car or house. If you own a house the judgment would be held against the house and would need to be paid off when the house is sold or refinanced. If you answer the insurance company must prove its case against you. 


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