Can this debt be discharged in Chapter 7

[nicole38]

3 Years ago I was sued by an insurance company (Maryland Automobile Insurance Fund) MAIF.I was involved in an auto accident without insurance and the accident was determined to be my fault.My wages were being garnished until I lost my job.I will be filing in the next 2 weeks.Can the amount that I was sued for be discharged in Chapter 7

[WharffRat]

I am not sure about being discharged

but this thread might help you http://www.bkforum.com/showthread.php?t=31708

[nicole38]

I had no insurance at the time of the accident so the other parties insurance company sued me for damages to the other person vehicle.

[Tbornetun]

I think the answer may be NO, you cannot discharge the debt since it was an accident that you were liable for, but you never know. I would do more research on the subject of priority, unsecured debt.

[justbroke]

On the other hand, my plain reading of 11 USC 523, is that they are dischargeable. The only exception to discharge for motor vehicle accident liabilities, are if;

1. The operation of the vehicle was unlawful; and
2. You were under the influence of alcohol or drugs.

(It must also be a personal injury or death case as well.)

Your operation was unlawful, because you didn't have proper insurance.

However, you were not under the influence of alcohol or drugs.

Conclusion: your personal liability as to the accident, is dischargeable.

That's my opinion, of course, I could be wrong.

[d80indebt]

As justbroke points out, the insurance claim should be dischargeable as long as the conditions are met. Unless of course it is illegal in your state to not carry insurance.

[keepmine]

We went thorugh this on another site a few years back. Here's what happened in Il.

http://forum.freeadvice.com/consumer-bankruptcy-2/pissed-please-answer-284773.html

341 meeting conclusion

--------------------------------------------------------------------------------

well the meeting came and went. My mom went to the meeting to object and it was of no help. My mom stated the trustee even asked the guy did you have car insurance, and he stated no, that he did not realize it had lapsed. Then the trustee basically told him that his case was a no asset case. I checked under the pacer system and the same day the meeting happend was the same day they logged it under his case that the trustee stated it was a no asset case. Anything else my mom can do? My mom called up her insurance company and it seems as if they are not going to bother with it...

[justbroke]

As justbroke points out, the insurance claim should be dischargeable as long as the conditions are met. Unless of course it is illegal in your state to not carry insurance.

Re-read what I posted. What I wrote (paraphrasing the law in 11 USC 523(9)) has an "and" between the two paragraphs. That is, that the operation had to be illegal and you had to be under the influence of drugs.

I find it amusing that they have that the operation of the vehicle had to be illegal combined with a driving under the influence condition. DUI is illegal in all States that I know of, so the mere act of DUI would make it non-diuschargeable. Strange wording.

From my understanding 11 USC 523(a)(9) really only addresses DUI cases and not true accidents caused by an operator not under the influence of any drug or alcohol.