Can they take all my money or the new home that I purchased after the accident?

I was at a four-way intersection. The car to the right of me pulled away then I started to go. I traveled across 3 lanes and the car behind the first car off for a moment and then continued on. I smashed into them at about the middle of their van. Now I have a letter saying that they want $14,000 and that that that may not cover all of it. I had let my car insurance lapse less than half a month because my email is screwed up and I didn't receive the bill. They are refusing to say that I was insured and are not protecting me. I was in the process of selling my home when this happened. Escrow has closed and I'm about to get the money. Can they seize it all? Is there someplace I can put it to make it safe? I'm thinking about buying a new house in another state which was a plan prior to the accident. The initial home that I sold was an inheritance. I don't know if that gives me some kind of protection. I just don't know what to do. This is the first time anything like this has ever happened to me.