Kentucky Bankruptcy Law

Counsel with Care

The Untouchable Debts

A couple of days ago I wrote about how you might lose your driver’s license as a result of non-payment of a judgment debt arising from owning or operating a car involved in an accident. Today I want to elaborate on that by pointing out two categories of such debt that may NOT get discharged in a Chapter 7 bankruptcy:

First, a debt that is  “for willful and malicious injury by the debtor to another entity or to the property of another entity” may be objected to and not discharged. 11 USC Sect. 523(a)(6). So, if you ended up causing a car wreck by purposely driving an extremely reckless manner or with intent to cause harm to another, the debt may not be discharged.

Second, and far more common (too common) if a debt is for “or death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance” then it may be objected to and not discharged. 11 USC Sect. 523(a)(9).

If either of these circumstances apply, then it is crucial to let your bankruptcy attorney know so they can help you plan appropriately.

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January 30, 2013 - Posted by | Bankruptcy, Chapter 7, Discharge, Planning, Pre-filing planning | , , , , , ,

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