As a Sacramento bankruptcy attorney I sometimes counsel clients who believe that every debt they have will be discharged via bankruptcy. Actually, however, certain debts are non-dischargeable. Liability arising from an accident in which a person kills or injures another and was illegally intoxicated (either by alcohol or drugs) at the time is an example of a non-dischargeable debt.
Note, however, that this rule applies only to debt arising from personal injury; debt related to property damage from the same incident would be dischargeable through bankruptcy.
For example, say you injure someone while driving under the influence of alcohol and are convicted of this offense. In your bankruptcy papers you list the injured party as a creditor. Six months after you receive the discharge in your bankruptcy case, the injured party sues you for personal injuries and property damage related to the accident. You will still be on the hook for the personal injuries portion of the suit. The claim related to the property damage will be dismissed, however, as this debt will have been discharged thanks to bankruptcy.
Remember, while bankruptcy can do away with most of your unsecured debt, there are certain categories of non-dischargeable debt which bankruptcy will not affect.
If you have questions pertaining to bankruptcy please contact our office at 925-932-7086. I am a Sacramento bankruptcy attorney located at 1104 Corporate Way, Sacramento, California 95831. I have additional offices in Fairfield, Oakland, and Walnut Creek. I offer free consultations to people considering bankruptcy.
