Sure, except you had been doing one thing actually, actually dangerous.
While you file chapter, most money owed might be discharged (worn out). Some money owed have a precedence standing, like most taxes, pupil loans, youngster assist/alimony, and prison restitution. These money owed are NOT discharged by the chapter.
So let’s say that you just’re in a automobile accident and your financed automobile is wrecked. Hopefully, your insurance coverage will cowl it and pay the lender. However, generally insurance coverage lapses, or doesn’t cowl the entire mortgage stability. In that form of scenario, you may file chapter and record the automobile mortgage stability within the chapter. If there’s a poor stability that isn’t coated by your insurance coverage, or your deductible, or lack of insurance coverage, that stability will likely be worn out by the bk.
As for the opposite automobile, 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 form of scenario, the opposite driver may even sue you for the damages you induced. This debt might be listed in your chapter.
However right here’s the caveat: generally the injury to the opposite driver might NOT be discharged by the bk. This solely occurs in the event you had been doing one thing actually, actually dangerous. For those who 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 will not be dischargeble:
(6)for willful and malicious harm by the debtor to a different entity or to the property of one other entity;
(9)for demise or private harm attributable to the debtor’s operation of a motorcar, 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;