Sure, except you had been doing one thing actually, actually dangerous.
Once you file chapter, most money owed might be discharged (worn out). Some money owed have a precedence standing, like most taxes, scholar loans, little one help/alimony, and legal restitution. These money owed are NOT discharged by the chapter.
So let’s say that you simply’re in a automotive accident and your financed automotive is wrecked. Hopefully, your insurance coverage will cowl it and pay the lender. However, typically insurance coverage lapses, or doesn’t cowl the entire mortgage stability. In that type of scenario, you may file chapter and checklist the automotive mortgage stability within the chapter. If there’s a poor stability that’s not lined by your insurance coverage, or your deductible, or lack of insurance coverage, that stability can be worn out by the bk.
As for the opposite automotive, if it’s your fault, hopefully your insurance coverage will cowl it. Sadly, there are occasions when you find yourself not carrying insurance coverage. (Disgrace on you)! In that type of scenario, the opposite driver would possibly even sue you for the damages you prompted. This debt might be listed in your chapter.
However right here’s the caveat: typically the injury to the opposite driver could NOT be discharged by the bk. This solely occurs in the event you had been doing one thing actually, actually dangerous. When you did it willfully, or maliciously, or whereas intoxicated, you be NOT protected by the chapter.
Below 11 U.S.C 523, these sorts of money owed should not dischargeble:
(6)for willful and malicious damage by the debtor to a different entity or to the property of one other entity;
…
(9)for demise or private damage attributable to the debtor’s operation of a motorized vehicle, vessel, or plane if such operation was illegal as a result of the debtor was intoxicated from utilizing alcohol, a drug, or one other substance;
