No. If you owe money to another base on a personal injury judgment against you then it is really not fair to that person for you to have the debt discharged in your bankruptcy proceeding. Civil settlements/judgments are in the category of nondishcargeable debts and will remain with you until you pay them!
The issue needs to discussed with an attorney who is qualified in bankruptcy litigation. Personal injury lawsuits are halted by the automatic stay when a BK is filed. However, it is not uncommon for personal injury suits and/or judgments to be excluded from a bankruptcy discharge.
No, judgments awarded due to personal injury or property damage are not dischargeable under bankruptcy law.
Can money from personal injury suit be taken from a creditor
Yes. Consult a knowledgeable bankruptcy attorney.
Most judgments can be included with the exception of child support enforcement, a court ordered restitution for personal injury, and some judgments that have connection to a criminal act.
A bankruptcy doesn't dismiss another legal action, like a judgment. But you can include the plaintiff's claim in your bankruptcy. The judge may allow this debt and discharge it along with all your other obligations.
In general, court settlements can be discharged through bankruptcy, but it depends on the nature of the settlement and the bankruptcy type filed. For example, debts resulting from personal injury claims or fraud may not be dischargeable in bankruptcy. It's essential to consult with a bankruptcy attorney to understand how specific settlements and claims are treated under bankruptcy law.
The safest option is to contact the bankruptcy trustee for guidance. Generally monies received as a personal injury award are exempt. However, the determination of the status of such, is made by the bankruptcy court.
There are debts that are not dischargeable in BK. Federal and State taxes. Child support and/or alimony. Student loans. Personal injury judgments, etc. A BK discharge does not mean debts are no longer owed. It prevents the creditor(s) from attempting to collect. After discharge, a consumer can choose to pay any creditor, without reassuming the debt as a whole.
Yes. Whether it will discharge the award isn't certain...and of course EVERYTHING YOU OWN AND EVERYTHING YOU OWE...no picking and chosing...is included in the BK.
Maybe, it depends upon what the civil suit pertains to, for example personal injury suits are generally not allowed to be included in BK actions.
That depends of the type of personal injury, and the details of the case.