QUESTION
Can the court charges be eliminated with bankruptcy or not?
Asked on Jan 06th, 2016 on Bankruptcy - Michigan
More details to this question:
He is 19 years old. I do not have any debt but was in car accident and caused damage of property while he borrowed an uninsured car. He had some debt form insurance company plus court fees since he has been charged with reckless driving etc. It is over $10 ,000 and he does not have any income at the moment. First, I heard that if he files he needs to file his own taxes but he does not work at the moment.
6 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The liability for property damage and personal injury from a car accident will be discharged in bankruptcy. Whether or not you file your own taxes makes no difference in filing bankruptcy.
Answered on Jan 28th, 2016 at 3:39 AM
Criminal penalties cannot be eliminated by filing a Chapter 7 Bankruptcy but can be paid off in monthly installments in a Chapter 13 bankruptcy. Debts relating to criminal actions also cannot be eliminated in Chapter 7 bankruptcy but can be paid off in a Chapter 13 bankruptcy. The only thing I do not know is whether or not this incident rises to the level of a criminal offense or not. An attorney would need to see the related paperwork to say. A Chapter 7 can eliminate damages relating to an ordinary run of the mill traffic accident.
Answered on Jan 27th, 2016 at 5:20 PM
Court ordered restitution is NOT dischargable in BK. Incidental costs might be. You need to consult with an attorney that can see the whole picture involved.
Answered on Jan 27th, 2016 at 5:19 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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A person need not file an income tax return if he has had no taxable income for the year in question. Court 'costs' that are in the nature of fines or forfeitures are not dischargeable in a bankruptcy. Neither is restitution ordered in a criminal case. Find a skilled BR lawyer: it's almost always worth the investment.
Answered on Jan 27th, 2016 at 5:19 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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He needs to see a bankruptcy attorney.
Answered on Jan 27th, 2016 at 9:12 AM
While the court fines would not be discharged in bankruptcy, the property damages could be discharged. Given the seriousness of the offense and the amount at stake, you would be wise to consult an experienced attorney to make sure that nobody else could be held liable for those expenses.
Answered on Jan 27th, 2016 at 9:12 AM