Legal Question in Credit and Debt Law in Wisconsin

Re: Judgement = financial hardship

If you were more than 50% at fault in causing the accident the injured party could sue and obtain a judgment against you whether it would cause tremendous financial hardship or not.

Once a judgment is entered it can be collected by garnishment of your wages if your income is not exempt -- because you received need-based assistance within the last 6 months or the garnishment would cause your household income (for the size of your family) to less than the poverty level.

It is also possible that your Wisconsin driving privileges could be suspended.

If you qualify, you could file bankruptcy under chapter 7 (standard bankruptcy) or under chapter 13 (wage earners plan whereby installment payments are ordered to be made over a period of time).

You could also try to negotiate a voluntary installment payment plan either before (preferably) or after a judgment is taken.