What makes for a complicated bankruptcy case?

[lotsahats]

I owe about 14K on two credit cards, and am facing a possible lawsuit due to a personal injury traffic accident where I was found at fault (I'm hoping the plaintiff will settle with the insurance company, so that I don't have to involve that person in this). I live in an apartment, and my only asset is my car, which I expect will be exempt under my state's "wild card" exemption.

I would think my case is pretty cut and dry, but what do I know? Is it very complicated?

[despritfreya]

Yours', from what you have posted, is not complicated. Complicated is:

1. Debtor has committed fraud against a creditor or caused some willful injury
2. Debtor has hidden assets from the bk estate
3. Debtor operates one or more businesses that need to be investigated
4. Debtor has made preferential or “fraudulent” transfers that can be recovered by a Trustee
5. Debtor is embroiled in a multifaceted piece of litigation and has claims against others named in the case.

And so on and so forth.

A person who is a typical wage earner, who, for whatever reason, just got in over his head, is not, in most situations, going to be a complicated bk.

Des.

[helpmeout]

When you consulted with your BK attorney, did you inform him/her about the lawsuit? It may not be dischargeable, but that is something that an attorney should be able to tell you.

[bcohen]

When you consulted with your BK attorney, did you inform him/her about the lawsuit? It may not be dischargeable, but that is something that an attorney should be able to tell you.

It is my understanding that liability for an at-fault auto accident--including civil liability for accidental death or injury and property damage--is dischargeable as long as you were not under the influence of drugs or alcohol. So if you simply weren't paying attention, were too tired, travelling too fast for conditions, or whatever, this will not be a problem from the point of view of bankruptcy.

Also, if you discharge your responsibility for money damages in bankruptcy, the other person can still go after their own insurance company, as well as your insurance company (up to your policy's limits). The only difference is that their insurance company cannot go after you for reimbursement.

[daylate]

First off, while not knowing your situation at all, 14 k in cc debt is not a lot. At worse you should be able to settle for no more than 50 cents on the dollar and probably less. The stain on your credit will not be as bad as a bankruptcy. Now to the accident, if you are sure bk will discharge any liability you have and it is going to be way beyond your means, I would think that you will have to wait to file until a judgment is awarded? My point being make sure you understand the timing of everything. Good luck