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attySince1978, Attorney
Category: Legal
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Experience:  Attorney for 30 years with over 500 arbitrations and trials representing over 2,000 clients.
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I had an accident car 2 years ago, I did not have insurance,

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I had an accident car 2 years ago, I did not have insurance, Now I received a letter for the insurance company that it says Request for entry of default What comes next? I do not have money but I bought a house 4 months ago. Do am I in a serious problem?
Submitted: 7 years ago.
Category: Legal
Expert:  attySince1978 replied 7 years ago.
You have apparently been sued and did not defend yourself. As a result the plaintiffs took a default Judgment against you and were awarded money by the Courts. The default Judgment filed against you should have the amount that the Plaintiff's were awarded.
A money Judgment can be taken against you by different methods. They can attach you bank accounts, put a lien against your wages and attach a certain amount every pay period and they can put a lien against your home.

If they levy against your bank account, you must have the exact amount they are seeking in your account otherwise they get nothing. They can have a portion of your paycheck sent to them each month until the Judgment is satisfied. They can force a sale of your home and attach any equity you may receive up to the amount of the Judgment.
I realize that many people do not defend themselves in these types of lawsuits because they feel that since they don't have any assets than why should they spend a large amount of money for defense attorneys fees. The problem is that they can file the Judgment against you and keep it alive for many years. If you ever inherit a large sum of money or if your home greatly increases in value than they could go after those assets.

You should immediately file a Homestead on your new home. This will protect the equity in your home up to a certain amount. It was $40,000. but I believe that has risen.
You may ask an attorney to negotiate some type of settlement on your behalf. If you do not settle with them and you file no defense papers than they can be awarded any amount that they ask for. You can always call the defense attorney and tell them that you have no insurance and you have no assets. If they hear that, they may just dismiss the case against you and they will take nothing from you. Most attorneys will not continue a lawsuit if the party has no money to pay towards the settlement. It would be a waste of time for them. You could have some luck with that approach. I would not, however, allow them to take a default Judgment against you. It could come back to haunt you someday.
I trust that you will find my answer helpful, therefore click ACCEPT after you have read my answer. We Experts Do Not receive any credit for our legal work for you until you have activated the ACCEPT button. A small bonus is helpful. Thank you and good luck.
As I said, try to avoid the default Judgment if it is not to late.
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