My wife was in a accident where she rear-ended a car that was stopped in the road at 30mph. It appears that we were at fault for the accident as you can imagine. Our car was smashed up and theirs was able to be driven with no airbags deployed. My wife and the other party were put into an ambulance and went to the ER. My wife was OK and it sounded like the other party was OK. 


Fast forward three weeks and today we just received a phone call from our insurance with someone that said he works in the large case insurance accident department. He told us the other individual was in the ICU for for a while and our insurance was set at 25K per individual 50K per accident. We haven't changed our insurance in 14 years and we picked the lowest amount while in college most likely.
The medical bills will be above the 25K most likely and then everything else. Most likely a lawsuit will happen due to our coverage being as low as it was. My wife is a stay at home mom with no income. We own/buying our home and it does have some equity of around 50K. We make decent money but are in no way capable of a lawsuit with student loans, mortgage and everything else we have just enough to put a tiny bit away into savings each month.
My question is if we do get sued can they garnish my wages, take our home or put a lean against it? The car was in my name and the insurance policy was in both of our names with her as the primary driver. We will be contacting a lawyer but as you can imagine we are really nervous right now. Any help or advice will help me get through the weekend while we research who to call.