Sure, except you have been doing one thing actually, actually unhealthy.
If you file chapter, most money owed will be discharged (worn out). Some money owed have a precedence standing, like most taxes, pupil loans, youngster assist/alimony, and legal restitution. These money owed are NOT discharged by the chapter.
So let’s say that you just’re in a automotive accident and your financed automotive is wrecked. Hopefully, your insurance coverage will cowl it and pay the lender. However, typically insurance coverage lapses, or doesn’t cowl the entire mortgage steadiness. In that form of state of affairs, you’ll be able to file chapter and record the automotive mortgage steadiness within the chapter. If there’s a poor steadiness that isn’t lined by your insurance coverage, or your deductible, or lack of insurance coverage, that steadiness can be worn out by the bk.
As for the opposite automotive, if it’s your fault, hopefully your insurance coverage will cowl it. Sadly, there are occasions if you end up not carrying insurance coverage. (Disgrace on you)! In that form of state of affairs, the opposite driver would possibly even sue you for the damages you brought about. This debt will be listed in your chapter.
However right here’s the caveat: typically the injury to the opposite driver could NOT be discharged by the bk. This solely occurs when you have been doing one thing actually, actually unhealthy. In the event you 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 are usually not dischargeble:
(6)for willful and malicious damage by the debtor to a different entity or to the property of one other entity;
…
(9)for demise or private damage 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;
