Debts
Can bankruptcy wipe out a debt for injuries from drunk driving?
Not the injury claim. In bankruptcy, a DUI debt for death or personal injury caused by operating a vehicle while unlawfully intoxicated is not discharged in Chapter 7, and a completed Chapter 13 plan does not discharge it either. The exception applies on its own, so the injured person does not have to file anything in the bankruptcy court to keep the debt alive. Criminal fines from the case also survive, while other debts, such as property damage, follow the ordinary rules.1 2 3 4 5
Connect to a bankruptcy lawyerIf you are facing debts after a DUI, bankruptcy treats them very differently. Money owed for injuring someone while driving under the influence is one of the debts bankruptcy leaves in place. This guide explains what the rule covers, chapter by chapter, and what happens to the other DUI debts.
General information, not legal advice. Rules and amounts change; check with a lawyer or the court before you act.
In this guide
What exactly does the rule cover?
The rule has several parts, and each one has to be present.1
- The debt is for death or personal injury. Damage to property is not part of this rule.1
- It was caused by your operation of a motor vehicle, a vessel or an aircraft. Boats and planes are covered, not only cars.1
- The operation was unlawful because you were intoxicated.1
- The intoxication came from alcohol, a drug or another substance.1
The wording turns on whether the operation was unlawful because of intoxication. It does not mention a criminal conviction. How a court decides that question in a given case is something to ask a lawyer.1
What happens to the debt in Chapter 7?
It is not discharged. You owe it after the case to the extent it was not paid during the case.1 6
Most exceptions to discharge apply automatically, and this is one of them. That sets it apart from debts for fraud or for willful and malicious injury, where the creditor has to ask the bankruptcy court for a ruling.3 1
A judgment the injured person has already won stays in force as well. A discharge voids a judgment only to the extent it establishes personal liability for a debt that was discharged, and this debt is not. Once the case is over, collection of a debt that was not discharged can pick up again.7 1
Filing still has a short-term effect. The automatic stay stops lawsuits and most collection activity while the case is open, so a civil suit by the injured person is paused. A criminal case is not. The stay does not stop a criminal action or proceeding.8 9
What happens in Chapter 13?
The debt survives here too. Debts for death or personal injury caused by intoxicated driving are on the list of debts that a completed Chapter 13 plan does not discharge.2
Chapter 13 also ranks these claims. Allowed claims for death or personal injury from operating a motor vehicle or vessel while unlawfully intoxicated are priority claims, and a plan must provide for paying priority claims in full unless the person owed agrees to different treatment. A plan usually lasts three to five years.10 11 12
To the extent a plan does not pay the debt in full, you still owe the rest when the case ends.12
What about the other DUI debts from the same crash?
A crash can leave several different debts, and they are not all treated alike.1 2
| Debt | In Chapter 7 | In Chapter 13 (completed plan) |
|---|---|---|
| Claim for death or personal injury1 2 10 | Not discharged | Not discharged; a priority claim the plan must provide for |
| Claim for damage to a car or other property1 4 5 12 | Not covered by the intoxicated driving rule; discharged unless another exception applies | Can be discharged |
| Criminal fine that is part of the sentence1 2 | Not discharged | Not discharged |
| Restitution that is part of the sentence1 2 | See the restitution guide; federal restitution is not discharged | Not discharged |
| Other debts, such as a defense lawyer's bill or a credit card used for related costs4 5 12 2 | Discharged unless an exception applies | Can be discharged if provided for by the plan |
A property damage claim can still be kept out of a Chapter 7 discharge if the creditor shows the harm was willful and malicious. That exception is not automatic. The creditor generally has to file a complaint within 60 days after the first date set for the meeting of creditors.1 3 13
Can bankruptcy help you keep or get back your driver's license?
Only in a narrow way. A government agency may not deny, suspend or refuse to renew a license solely because you were a bankruptcy debtor or have not paid a discharged debt. A DUI injury debt is not discharged, so that protection does not reach it.3 14 1
Filing does not pause the criminal case or certain government enforcement actions. Questions about a license suspension imposed for the offense itself are for a lawyer in your state.9
What can change the answer?
Because every part of the rule has to be met, the facts of the incident matter. If the injury did not involve operating a vehicle, vessel or aircraft, or the operation was not unlawful because of intoxication, this rule does not apply, though another exception might.1
If you cannot finish a Chapter 13 plan and the court grants a hardship discharge, the debts left out are similar to those left out of a Chapter 7 discharge, so the injury debt survives that as well.3 2 1
Whether an insurance policy covers some or all of the claim is a separate question that bankruptcy law does not answer. Raise it with your lawyer and your insurer.
Common questions
Does the injured person have to sue me in bankruptcy court?
No. This exception to discharge applies automatically. Only certain debts, such as debts from fraud or willful and malicious injury, require the creditor to ask the bankruptcy court for a ruling.3 1
Does the rule apply to boating accidents?
Yes. It covers operation of a motor vehicle, a vessel or an aircraft that was unlawful because the operator was intoxicated.1
Sources
Official courts & government references- 11 U.S. Code § 523(a)(9) (Cornell LII)
- 11 U.S. Code § 1328(a) (Cornell LII)
- Discharge in Bankruptcy - Bankruptcy Basics (uscourts.gov)
- 11 U.S. Code § 727(b) (Cornell LII)
- 11 U.S. Code § 301(b) (Cornell LII)
- Chapter 7 - Bankruptcy Basics
- 11 U.S. Code § 524(a)(1) (Cornell LII)
- Glossary of Legal Terms (uscourts.gov)
- 11 U.S. Code § 362(b)(1), (b)(2) (Cornell LII)
- 11 U.S. Code § 507(a)(10) (Cornell LII)
- 11 U.S. Code § 1322(a)(2), (a)(4) (Cornell LII)
- Chapter 13 - Bankruptcy Basics (uscourts.gov)
- Federal Rules of Bankruptcy Procedure, Rule 4007(c) (Cornell LII)
- 11 U.S. Code § 525(b) (Cornell LII)