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VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
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If a person receives a judgement due to negligent

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If a person receives a judgement due to negligent entrustment of an automobile, are you allowed to declare personal bankruptcy in this kind of situation or do they not allow this for court ordered dept?

A discharge in bankruptcy releases the debtor from all provable debts, except (1) taxes, (2) liabilities for obtaining money under false pretenses, or for wilful and malicious injuries to person or property, or for alimony, or for maintenance or support of wife or child, or for seduction, or for criminal conversation, (3) those not duly scheduled where no notice to debtor, (4) those created by fraud, embezzlement, misappropriation and defalcation.

If the judgment was not for willful and malicious purposes, and it was reduced to judgment prior to filing bankruptcy it is highly probable that the judgment is dischargeable in bankruptcy. There may be additional evidentiary hearings on it, but my opinion is that is dischargeable as long as there were criminal charges associated with the judgment.

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