I am in Michigan. However, the Bankruptcy laws would apply, because you could file for bankruptcy. If you have insurance, the insurance company will take care of things, up to the policy limits.
Don't know the first thing about NJ law. if you cause an accident your insurance co pays the damage and you are OK./ if you don't have insurance and someone gets a judgment against you they may take Any of your assets subject to State law which might include a homeowners exemption (homestead rights) if you have a problem get a lawyers help early.
Why would you ask a NJ law question of Mi. lawyers? Asking NJ lawyers will get you an educated answer. Although in general your car insurance company responds and defends you for any auto claims. Usually the Plaintiff will accept payment from your insurer in full settlement of claims. If you did not have insurance and/or had very small limits and have a fair amount of assets, the Plaintiff may try to get personal assets; however, the assets would have to be individual assets only if only you were individually responsible for the incident. I can't say if NJ law is exactly this way on all these points, but would generally expect what I've indicated to likely be accurate
If you caused the accident, you should notify your insurance company immediately. They will provide you with a defense, but need to be put on notice as quickly as possible. Provided that you have insurance, it should cover the lawsuit, and protect your assets.
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