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What should I do if I received a subrogation letter?

Question Details: I was in a minor accident couple months ago, no police report was taken. I just received a subrogation letter asking for 12K. I have no ammount close to that, as I am a full time student and work part time. Honestly speaking, the accident was at most $800. I spoke to them and said the least was $8700. I don't know what I should do. They gave me until the end of them month. What should or can I do? What happens if I don't pay it?

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