Many clients have questions regarding their debt and which items can be discharged in bankruptcy.
A debt that was incurred as a result of personal injury or death caused by operating a vehicle while intoxicated is not dischargeable in a chapter 7 or 13.
The debtor must have been intoxicated at the time. Intoxication may be due to alcohol or any other substance. Also, the standard of intoxication is based on the laws of the state.
The debt must be due to the death or personal injury of a person. Nondischargeability does not include debt incurred due to property damage, as a result of operating a vehicle while intoxicated. In other words, debt due to property damage caused by operating a vehicle while intoxicated is dischargeable.
The debt is nondischargeable if the debtor is operating a motor vehicle, vessel, or aircraft. If the vehicle is not deemed one of the aforementioned vehicles, the debt is dischargeable.
If the debt is nondischargeable based on the above facts, a chapter 13 debtor must pay such debt as a priority through the bankruptcy plan.
Robert Manchel, NJ bankruptcy lawyer, may be contacted at 1(866) 503-5655 to talk about your situation and how bankruptcy protection may apply.