Drunk Driving and Bankruptcy

June 7, 2010 | by Christopher Hewitt

DEBTS ARISING OUT OF DRUNK DRIVING CASES ARE NOT DISCHARGEABLE UNDER THE BANKRUPTCY CODE

If you have been sued for operating a motor vehicle while under the influence of drugs or alcohol, or another substance as a result of injuring another person, then your debts for this obligation will survive the bankruptcy and not be discharged. Section 523(a)9 of the bankruptcy code excepts from discharge debts from personal injury cases where the debtor was under the influence.
Any kind of willful or malicous conduct by the debtor to another person will not be discharged. Another one that comes up criminal restitution fines, child support orders. These are debts that you will live with after your bankruptcy is discharged, so if these are your reasons for filing, I would advise against it.

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How does debt consolidation affect credit scores?

Initially, it might cause a slight dip due to credit inquiries. However, consistent payments can improve your credit score over time.

What is the difference between debt consolidation and debt settlement?

Debt consolidation involves taking a new loan to pay off debts, while debt settlement is negotiating to pay less than you owe. Settlement can negatively impact your credit score.

What are secured vs. unsecured debt consolidation loans?

Secured loans require collateral (like a house or car), usually with lower interest rates. Unsecured loans don't require collateral but typically have higher rates.

Is debt consolidation right for me?

It depends on your total debt, interest rates, credit score, and payment capability. It's suitable if you can pay off your debt within five years and secure a lower interest rate than your current debts.

Should I consider long-term financial planning?

Yes, debt consolidation should be part of a broader financial strategy including budgeting, cutting expenses, and building an emergency fund.

How do Chapter 7 and Chapter 13 bankruptcies in California differ?

Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows debt restructuring over a set period, usually three to five years.

Can my spouse's bank account be garnished for my debt?

Bankruptcy laws offer protections against such actions, but specifics depend on individual cases and state laws.

How can I learn more about my options?

Consulting a California bankruptcy attorney can provide clarity. Firms like The Law Offices of Christopher Hewitt offer free consultations to explore debt relief paths.