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davlabo, Attorney
Category: Bankruptcy Law
Satisfied Customers: 3255
Experience:  Attorney licensed in multiple jurisdictions
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I plan to file for Bankruptcy within the next 12-months (high

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I plan to file for Bankruptcy within the next 12-months (high consumer debt and back-taxes due the IRS). I decided to settle out-of-court a personal injury civil lawsuit and now have a large monthly payment to payoff the agreement. Will a BK erase the out-of-court settlement agreement?

Hi and thanks for asking your question. My name is XXXXX XXXXX I will be assisting you. Many personal injury claims can be discharged, although there are certain claims that cannot. For example, in accordance with Section 523(a)(6) of the Bankruptcy Code, debts for "willful and malicious injury by the debtor to another entity or to the property of another entity" are not discharged. Also, the Bankruptcy Code prohibits the discharge of any debts arising from the "death or personal injury caused by the debtor's operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance." Thus, it depends on the nature of the personal injury claim. Most negligence claims can be discharged, but willful and malicious injury claims as well as the intoxication claims cannot be discharged.



I hope this information has been helpful to you. Please feel free to post additional questions or comments if I can assist you further.

Customer: replied 5 years ago.
I apologize for not being clear. The civil lawsuit was filed in Superior Court, and alleged that I gave this person a sexually transmitted disease. I denied that I gave it to this person. In preparing for the trial, I learned from the ex-spouse that they both had unprotected sex when married and one of them had the STD. Because I could not afford the court costs of (e.g.,subpeonas, depositions,expert witnesses and large legal fees for legal representation, I agreed to an out-of-court (no-fault) agreement to be paid over the next 60-months. I a sold my house to prior to the agreement and paid-off a few bills (very little equity. I now pay the IRS, rent, monthly car payment and live month-to-month. A friend suggested BK and I am now starting to gather information. Thanks for your help!
Thanks very much for the clarification. Based on the facts as provided, it would appear that your case wouldn't be one that fell under the exceptions listed above and should be dischargeable in bankruptcy. Of course your best course of action to prepare in advance would be to set up an hour with a local bankruptcy attorney, have them review the civil case and settlement, and confirm that it will be discharged.
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