QUESTION
Can you declare bankruptcy for a civil suit that wants a million dollars for crashing a friend’s car into their house?
Asked on Jul 09th, 2014 on Bankruptcy - Georgia
More details to this question:
I had received a DUI 6 months prior to this incident. I caused damage to the house I crashed into but the car owner had insurance. The home owners are suing me for over a million dollars for "in punitive funds" or something in those lines. If I declared bankruptcy, would I still owe that money for the rest of my life? Would I ever have credit again or be able to buy a house? I'm a single father and I cannot imagine trying to raise my son alone without being able to have a car, house etc. in my name. What should I do, and or how do I go about this... I'm terrified.
11 ANSWERS
You should consult with a bankruptcy attorney to discuss this situation more completely. Bankruptcy generally wipes out your debts but there are exceptions. Once a debt is discharged you are no longer liable to pay it ever.
Answered on Jul 11th, 2014 at 3:08 AM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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The Law Offices of Peter M. Lively
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11 USC Section 523(a)(6) provides that damages from willful and malicious injury to the property of another entity isn't discharged in Chapter 7.
Answered on Jul 10th, 2014 at 6:01 PM
I would advise filing bankruptcy and then you can wait and see whether the homeowners contest the discharge of the debt. If they don't file an adversary proceeding in your bankruptcy case, then it would be discharged. There are not enough details in your description to say whether the homeowners have grounds for contesting your discharge. If they succeed, then you would still have to face the lawsuit and defend it as best you can, but a bankruptcy would put a stay on the lawsuit until your bankruptcy is over.
Answered on Jul 10th, 2014 at 1:22 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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As a specialist in this area, it appears to me that you should be able to discharge this, too, which will enable you to nurture and recover your credit score after you get your discharge. However, you should seek counsel from a specialist in bankruptcy as soon as possible before that litigation gets too far along.
Answered on Jul 10th, 2014 at 12:30 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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You can file bankruptcy on the debt. If you filed Ch 7 the creditor would have to file a nondischargeability action and it could very well be excepted from discharge depending on the circumstances. However, if you filed a Ch 13, then you would receive a discharge of the debt as well.
Answered on Jul 10th, 2014 at 11:52 AM
You could certainly try to eliminate this debt through bankruptcy but if the creditor files suit against you in the bankruptcy, which they are allowed to do under 11 USC sec 523, you will likely lost. There may be a strategy you can utilize under Chapter 13 or Chapter 11 of the bankruptcy code (Chapter 11 if the claim is over the debt limits for Chapter 13) that could allow you to make payments on resolving this debt. You are going to need to have the best bankruptcy attorney you can find to represent you - one that has experience with adversary proceedings in bankruptcy.
Answered on Jul 10th, 2014 at 11:45 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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This is the purpose of bankruptcy, to give people a fresh start when they have debt they can't pay. I would advise you to look into filing quickly, $1,000,000 is far over the unsecured debt limit for Chapter 13, but as long as it's just a lawsuit and not a judgment, then it's contingent and there is no limit on contingent debt. One aside, if you were under the influence of drugs or alcohol at the time of the incident, it might be non-dischargeable.
Answered on Jul 10th, 2014 at 10:35 AM
If the suit is indeed civil, not criminal restitution, it can be discharged in BK. You can have credit again very quickly after BK.
Answered on Jul 10th, 2014 at 10:15 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would most certainly engage an attorney for some counsel, providing the details of the situation. Certainly there is a potential of personal liability but also that the car owners insurance should be covering the damages and providing you defense if the car was being used with permission and you are legally driving.
Answered on Jul 10th, 2014 at 10:01 AM
Taxation Attorney serving Charleston, WV
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C. Page Hamrick III
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FOR WEST VIRGINIA ONLY: When filing a petition in bankruptcy you must list all your debts and obligations, whether set in amount or contingent, such as a pending lawsuit. It is up to the Bankruptcy Court to determine whether a debt is dischargeable or not.
Answered on Jul 10th, 2014 at 9:58 AM
Bankruptcy Attorney serving Buford, GA
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Kenneth A. Parker, PC
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You may be able to file a chapter 7 and wipe out the debt IF you were not intoxicated are the time of this accident.
Answered on Jul 10th, 2014 at 8:38 AM