Insurance question

What is the name of your state (Georgia)?

I was involved in an auto accident. My insurance company paid the other party $50,000 for injuries and signed a limit of liabilty release allowing the party to go to there insurance company for the rest of the injury payment which was $21,000. Now the other parties insurance company is threatening me with a lawsuit seeking excess amounts if I do not pay them $25,000. I am unemployed and have zero assets. What can happen and what should I do?

If you are unemployed with zero assets, the judgment will remain on your credit report for a long time. You may be hounded with collection calls as well. While you will not go to jail, your credit report will be ruined for several years after the judgment is paid in full. The judgment will also accrue interest if unpaid at a rate set by your state. If you have a bank account they could levy it. If you get a job in the future, you wages could be garnished.

You might be best to try to get a job and negotiate a payment plan. Also, bankruptcy might be an option as well.

If they signed a release, they should not be able to get any more money from you.

ecmst12 said:

If they signed a release, they should not be able to get any more money from you.

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the person i got into a wreck with is the one who signed the release, its their insurance company that is threatening to sue me for the money since they had to pay for the rest of the bills.

I am fairly certain they can't do that. Contact your insurance company and ask about the release and if you are protected from this type of action.