Drunk Driving Debts and Bankruptcy Discharges

When a consumer files for Chapter 7 bankruptcy or Chapter 13 bankruptcy, there are certain types of debt that can not be discharged (or are non-dischargeable). When consumers in Oak Park think about non-dischargeable debts, they often consider debts related to spousal or child support, or tax debt. Yet it is important to understand that debt owed as a result of a personal injury lawsuit also may not be dischargeable if the damages award resulted from a drunk driving claim. To put it another way, if a consumer owes a significant amount of debt related to injuries she caused in a drunk driving accident, is that debt dischargeable? Does the answer to that question change if the debt is related to the consumer’s own medical expenses caused by a drunk driving accident that she caused?
We want to answer these questions by discussing the way the U.S. Bankruptcy Code approaches debt discharges and drunk driving accidents.
Bankruptcy Discharges for Drunk Driving Accident Verdicts
Imagine that a consumer has too much to drink during a holiday party and gets behind the wheel of an automobile. The consumer has a blood alcohol concentration (BAC) above the legal limit, and thus is considered to be unlawfully driving under the influence. As a result of drunk driving, the consumer causes a serious car accident that results in severe personal injuries to another motorist. The injured motorist files a personal injury claim against the consumer and wins a judgment of $250,000.
The consumer has no way of paying the $250,000 that she owes, and she decides to file for bankruptcy in hopes of discharging that debt. However, the U.S. Bankruptcy Code says that she is unable to do so. Specifically, Section 523(a)(9) of the U.S. Bankruptcy Code states that one type of debt excluded from discharge is any debt “for 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.”
To be clear, a debt owed as a result of causing injury or death to another party in a drunk driving accident is not dischargeable in a consumer bankruptcy case. But does the answer to this query change if the debtor is seeking to discharge medical debt for herself that resulted from injuries in a drunk driving accident she caused?
Dischargeability of Medical Debt from a Drunk Driving Crash When Debtor is the Injured Person
If the debtor was the injured person and also the drunk driver, does Section 523(a)(9) still apply such that the medical debt is non-dischargeable in a consumer bankruptcy case? This is a more complicated question, and it is one that does not necessarily have a straightforward answer.
Section 523(a)(9) does not specify that the personal injury caused by the debtor’s drunk driving must be a personal injury to a different party. At the same time, however, this section of the U.S. Bankruptcy Code typically is applied to debts owed as a result of injury to another party—not to the debtor herself.
If this is your situation, it is extremely important to discuss your case with a bankruptcy attorney who can determine whether your debt is likely to be discharged in a bankruptcy case.
Contact an Oak Park Bankruptcy Lawyer
For questions concerning debt discharge in a bankruptcy case, an Oak Park bankruptcy lawyer can help. Contact the Emerson Law Firm for more information.
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