A financial life preserver is available for people who are in desperate need of financial relief. Most people know that some debts will not be discharged in your bankruptcy, including most taxes, student loans and domestic support obligations.
Debts incurred during an incident when you were driving while intoxicated might also be denied a discharge. The applicable section of the bankruptcy code, 11 U.S.C. 523(a)9, states that debts will not be discharged if it is related to the "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".
Now often times the law changes as Congress changes its mind on what debts it believes should be discharged and which ones should not. As of now, four words in the statute matter the most and those are intoxicated, caused, death and personal injury.
Bankruptcy discharges many debts automatically. Debts related to driving while intoxicated are not discharged automatically. Debtors who wish to have these debts discharged will have to pursue a court order from the bankruptcy court after showing one or more elements are not met.
Was the debtor intoxicated? Naturally, each state is going to have their own legislative and judicial history on this subject so it will vary depending on where you live.
There are decisions where a court found a debtor to be intoxicated even though there was no criminal charge or even a breath test. Another decision found a debt dischargeable because the victim did not show that the debtor was intoxicated.
The fact that a driver is only convicted of reckless driving instead of a DUI does not save the debtor either as one court found the debtor was intoxicated despite his plea deal. The evidence will show whether the driver was intoxicated and that is what will determine which way the court decides on the issue of intoxication.
If the debtor fails to show he was not intoxicated, he may be able to prove the debt does not relate to the death or personal injury of another person.
If the debt is a result of property damage, then it will be discharged. If a state issues a fee as a consequence of an incident in which you were intoxicated while driving, it will also likely be discharged.
If you are unable to show that you were not intoxicated or that the damage was not from a death or personal injury, there is still one more potential avenue. You can try to prove that you were not the cause of the injury or death. There are many variables that might exist in your situation that may help you here, but it is not easy.
The obvious goal of this law is to stop someone from benefiting from a bankruptcy after killing or hurting someone while driving under the influence. If you get drunk, then go for a ride and hit a pedestrian and that person dies, then it would be a pretty simple analysis.
Perhaps there are additional circumstances in your particular situation, however, that may make it difficult to predict how the court would react. It may be possible that another person was intoxicated and was the true cause of the accident.
Street conditions or weather may also be viewed as part of the cause. Any number of factors can exist that may give you a chance in bankruptcy court.
If you are in bankruptcy and have a debt that falls under the purview of section 523(a)9, you are in a very difficult situation. A discussion with an attorney, however, about pursuing pathways to declaring it discharged would be in your best interests.
Debts incurred during an incident when you were driving while intoxicated might also be denied a discharge. The applicable section of the bankruptcy code, 11 U.S.C. 523(a)9, states that debts will not be discharged if it is related to the "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".
Now often times the law changes as Congress changes its mind on what debts it believes should be discharged and which ones should not. As of now, four words in the statute matter the most and those are intoxicated, caused, death and personal injury.
Bankruptcy discharges many debts automatically. Debts related to driving while intoxicated are not discharged automatically. Debtors who wish to have these debts discharged will have to pursue a court order from the bankruptcy court after showing one or more elements are not met.
Was the debtor intoxicated? Naturally, each state is going to have their own legislative and judicial history on this subject so it will vary depending on where you live.
There are decisions where a court found a debtor to be intoxicated even though there was no criminal charge or even a breath test. Another decision found a debt dischargeable because the victim did not show that the debtor was intoxicated.
The fact that a driver is only convicted of reckless driving instead of a DUI does not save the debtor either as one court found the debtor was intoxicated despite his plea deal. The evidence will show whether the driver was intoxicated and that is what will determine which way the court decides on the issue of intoxication.
If the debtor fails to show he was not intoxicated, he may be able to prove the debt does not relate to the death or personal injury of another person.
If the debt is a result of property damage, then it will be discharged. If a state issues a fee as a consequence of an incident in which you were intoxicated while driving, it will also likely be discharged.
If you are unable to show that you were not intoxicated or that the damage was not from a death or personal injury, there is still one more potential avenue. You can try to prove that you were not the cause of the injury or death. There are many variables that might exist in your situation that may help you here, but it is not easy.
The obvious goal of this law is to stop someone from benefiting from a bankruptcy after killing or hurting someone while driving under the influence. If you get drunk, then go for a ride and hit a pedestrian and that person dies, then it would be a pretty simple analysis.
Perhaps there are additional circumstances in your particular situation, however, that may make it difficult to predict how the court would react. It may be possible that another person was intoxicated and was the true cause of the accident.
Street conditions or weather may also be viewed as part of the cause. Any number of factors can exist that may give you a chance in bankruptcy court.
If you are in bankruptcy and have a debt that falls under the purview of section 523(a)9, you are in a very difficult situation. A discussion with an attorney, however, about pursuing pathways to declaring it discharged would be in your best interests.
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You should definitely speak with a bankruptcy lawyer to see if you can use bankruptcy to eliminate debt.
