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Suppose that, before filing for bankruptcy, Stephen had been involved in an automobile accident. The attending officers determined that Stephen's blood-alcohol level was above the legal limit. An injured
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43 votes
Suppose that, before filing for bankruptcy, Stephen had been involved in an automobile accident. The attending officers determined that Stephen's blood-alcohol level was above the legal limit. An injured passenger in the other car sued Stephen and won a settlement. Further suppose that Stephen, as part of his Chapter 13 bankruptcy, attempted to discharge the car-accident settlement in addition to attempting to discharge his obligation for his children's college expenses. Would he be successful?

User Aeskr
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15 votes
15 votes

Answer:

No, because in bankruptcy repayment plans, certain debts are not dischargeable, including those related to injury or property damage caused while driving drunk.

Step-by-step explanation:

Dischargeable debts are defined as amounts owed that can be wiped out by one's bankruptcy discharge.

Once the bankruptcy discharge is issued, creditors in such cases can no longer collect on the debts

An example of dischargeable debts is credit card debt and medical bills

In this scenario however where Stephen had been involved in an automobile accident and attending officers determined that Stephen's blood-alcohol level was above the legal limit.

Any debt in relation to the injured party cannot be discharged through bankruptcy

User Mike De Klerk
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