Since your auto insurance is inadequate to cover the damage claims of the landlord and the tenants, they could file a lawsuit against you for negligence. Refer the lawsuit to your auto insurance company which will provide you wiht an attorney at no cost to you.  If the plaintiffs (landlord and tenants) obtain a judgment against you which you cannot afford to pay, it would be advisable to file bankruptcy at that time.  It would be premature to file bankruptcy until there is a judgment against you because you wouldn't know the exact amount of the judgment prior to that time. Depending on your income and other factors, you may be eligible to file Chapter 7, which is a type of bankruptcy which eliminates certain types of debts.  If you are ineligible to file Chapter 7, you can file Chapter 13; however, Chapter 13 bankruptcy requires a plan (budget) for repayment of creditors.