I was In a car accident several years ago, the party Involved In the accident Is claiming they were Injured.

First, notify your auto insurance carrier immediately.   Each state has certain assets which are exempt from bein used to satisfy judgments. For example, NY exempts up to $2,500 of equity in a car and up to $10,000 equity in a home.  I don't know what the California exemptions are (it should be easy enought to find out online).  If you lose the lawsuit and cannot satisfy the judgment through insurance or otherwise, your non-exempt assets can be sold to pay the judgment.