A couple of options come to mind immediately:
1. Pay the debt. Seek reimbursement if possible from the insurance agency later.
2. Make a successful motion to set aside the judgment. You'll likely need an attorney to help with this if it's even possible given the rules of your jurisdiction.
3. File for bankruptcy protection.
Your jurisdiction may offer additional methods and I would advise you to seek legal counsel quickly to determine what those might be.
You should have an attorney review the judgment against you as well as your insurance coverage to determine the next course of action. There are too many issues that arise from your circumstances, and there is a lot more information needed to properly analyze them. You may give me a call if you wish to discuss further. Good luck.
I am a Colorado-licensed lawyer, but I'm not your lawyer until we sign an attorney-client fee agreement. The response offered is general; you should contact an attorney to obtain legal advice for your particular situation. If you wish, you can contact me at (720) 379-5480 and set up a free consultation to discuss your specific legal needs.
Seek out counsel on this, but if you were never served, you could try to set aside the Judgment. In addition, I would suggest considering bankruptcy. Otherwise pay the debt and fight the insurance company if you gave notice of the claim.
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