Sued For Car Accident From 7 Years Ago (nj)

I was in a car accident in 2018, when I was 19. I was making a left turn at a yellow light, misjudged the timing, and was T-boned by a tow truck. I am being sued for ~$50k by the truck company. They tried to come after my mom first, but my parents were already in a bankruptcy so it was put on hold. Their bankruptcy recently ended, and I’ve just gotten a letter in the mail stating that there is a hearing for “an order to vacate dismissal and reinstate the matter to the active list as to defendant My Name” I’m 26 years old, I’m a full time student and bartender expecting to finish my bachelors degree in May and planning on grad school. I have no assets or money. From what I understand (which isn’t much), the best case scenario is a settlement for much less than the amount being asked for. Worst case, I have to file for bankruptcy. If that happens, I won’t be able to get graduate students loans. How do I go about this? What happens next? What are my best options? Thank you for any guidance here!