More details to this question:
I had been incarcerated for 38 months. During my incarceration, I was sued for an accident I was in. I had no insurance. There was a judgement against in favor of 2 insurance companies totaling $14,600. I was going to claim bankruptcy when I got out anyway. Will that wipe out the debt owed or will I still have to pay?
12 ANSWERS
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Generally, yes, those debts will be discharged as part of the bankruptcy. However, if the underlying judgment found that there was some type of fraud or other instances, the debt may not be discharged. Visit with your attorney to make sure.
Answered on Apr 07th, 2014 at 8:37 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The purpose of bankruptcy is to wipe away civil debts. Generally, the only reason that the debt from an auto accident won't be wiped out is if you were drunk and caused the accident.
Answered on Apr 02nd, 2014 at 8:16 PM
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It depends. 11 U.S.C. 523(a)(6) does not discharge debts incurred through willful and malicious injury to another or another's property. 11 U.S.C. 523(a)(9) does not discharge debts incurred for death or personal injury caused by operation of a motor vehicle if unlawful because of intoxication. Also, most restitution is nondischargeable.
Answered on Apr 02nd, 2014 at 7:58 PM
The debt will be discharged under most circumstances. If you were found guilty of DWI and causing the accident, the debt may not be discharged.
Answered on Apr 02nd, 2014 at 7:56 PM
If the debt is indeed merely a civil debt, yes, it can be discharged. There are certain categories of civil debt (as opposed to criminal restitution) that cannot be discharged. One of these relates to damages in DUI cases.
Answered on Mar 31st, 2014 at 6:45 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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It depends. If there is any finding that the there was some intention in the accident, the insurance companies may be able to file a complaint for the Court to rule their claims non-dischargeable. If there was no intention or gross negligence, for example, it is likely that it would be discharged along with all other debts. However, that does not happen automatically and the insurance companies need to make a cost-benefit analysis to figure out if it is worthwhile to pursue such a complaint as it involves retaining an attorney and going all the way through trial if you defend, which can be quite expensive for everyone involved. It most likely would cost more than $14,600 and then the creditor has to worry about whether such judgment can be collected from you.
Answered on Mar 31st, 2014 at 6:45 PM
Deborah F. Bowinski
Assuming there were no DUI issues related to the accident then a bankruptcy should relieve you of those obligations.
Answered on Mar 31st, 2014 at 6:45 PM
Civil judgments can often be eliminated by bankruptcy. The types of debts that may be ineligible to be eliminated are described in 11 USC sec 523. If the accident was related to a criminal action, such as drunk or drugged driving, it is possible you may not be able to eliminate it through bankruptcy, but the creditor would have to file suit against you in bankruptcy court very quickly to stop the debt from being eliminated.
Answered on Mar 31st, 2014 at 6:43 PM
Debt Relief Attorney serving Anaheim, CA
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Marlin Branstetter Attorney at Law
Unless the accident was the result of driving under the influence the debt would be discharged in bankruptcy.
Answered on Mar 31st, 2014 at 6:43 PM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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A debt arising out of a traffic accident can be deemed non-dischargeable through what is called an adversary complaint. Your victim would bring an action, similar to a civil action, but in the bankruptcy court, to make it impossible for you to discharge your debt if the Court decides it is a debt "for willful and malicious injury by the debtor to another entity or to the property of another entity."
Answered on Mar 31st, 2014 at 6:42 PM
Unless the debt was for personal injury caused by DUI, it should be discharged in bankruptcy.
Answered on Mar 31st, 2014 at 6:42 PM
Litigation Attorney serving San Antonio, TX
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Graves Law Firm
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The auto accident debt should generally be treated as any other unsecured debt that can be discharged under Chapter 7, unless you were driving drunk at the time of the accident. There's a special provision of the bankruptcy code that prevents discharge of debt incurred because of drunk driving.
Answered on Mar 31st, 2014 at 6:20 PM