Can You Discharge a Car Accident Verdict in Bankruptcy?

car accident verdict in bankruptcyIt’s not common that a private individual will have personal financial responsibility for damages suffered by another person in a motor vehicle accident. That’s generally covered by automobile insurance. There are, however, isolated instances where you may be sued directly by another person, or by an insurance company, for losses incurred. Can you seek to discharge those debts with a Chapter 7 bankruptcy filing?

When Chapter 7 Allows Discharge of a Car Accident Damage Award

As a general rule, you cannot discharge a jury award in a motor vehicle accident case if you were driving under the influence or intoxicated at the time of the crash. If, however, there’s no evidence that you were impaired, you can discharge the debt, even if your driving was considered reckless. In addition, if your debts were covered or paid for by insurance, you cannot seek to have them discharged.

In a Chapter 13 debtor’s reorganization, you are also prohibited from discharging judgments arising out of a drunk driving motor vehicle accident. Furthermore, Chapter 13 prohibits the discharge of debts that are a consequence of malicious or willful acts. In fact, these types of debts are automatically precluded from discharge, such that creditors need not take any affirmative steps to prevent discharge. The ban on discharge, though, relates only to personal injury losses. You can discharge judgments of property damage resulting from a motor vehicle accident.

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.

Speak Your Mind


Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

How Can I Help

Complete the contact form
and I will email you.

  • This field is for validation purposes and should be left unchanged.

Consumer Bankruptcy

Can I keep my car? Will bankruptcy stop a foreclosure? Will I ever be debt-free again? How will I ever pay these medical bills?

Read More

Chapter 7 Bankruptcy

If you want to stop creditor harassment, eliminate repossession debt, stop garnishments and keep your house, and car, a Chapter 7 bankruptcy could help.

Read More

Chapter 13 Bankruptcy

Are you in jeopardy of losing your house? Are you making good money but everyone is asking for payment right now? Do you want or need to stop collections?

Read More