Question from a friend

[Genenco]

Friday, one of my co-workers told me of an incident 2 years ago, where he ran a red light, smashed into a company van and totaled it. Thankfully, the driver walked away from it.

Now the company sends him a letter about once a month, demanding $17,500 in repayment for the damage. Needless to say, he doesn't have it. He then asked me, "Would a BK 7 wipe it out?"

I told him I didn't know, but would ask here...But he'd be better off seeing a lawyer anyway.

[SleeplessInMI]

Tell your friend he should consult with a lawyer. I am sure a lawsuit is coming in the near future for him.

[Genenco]

Tell your friend he should consult with a lawyer. I am sure a lawsuit is coming in the near future for him.

Yes, I'd have expected he'd have been sued by now, but find it strange he hasn't.

State: MI
Filed: 09/09/05
341 Meeting: 10/19/05 - DONE - My Experience

I sure liked how you told of your experience. That's got to help alot of scared people out there.

[sunshine08]

I don't know about all states can only speak of NC, and being one of my parttime hobbies includes writing pink slips for things like this, I am not exactly sure what you are asking. In NC, every vehicle is required to have liability insurance, (notice I said required), we also have uninsured/underinsured coverage, options as well as comprehensive and collision. Here a ticket will carry some weight, but normally the insurance companies decides who is at fault and pay or not pay accordingly, part of this equation is what degree each drivers contirbuted. Example if I feel asleep at the wheel and crossed the center and hit you head on, totally my fault, BUT, if you crossed the center lane, or had been drinking, etc. you contributed to the fault, depending on the exigent circumstances decides which inusrance company pays. If your friend the driver, had insurance, his insurance company whould have paid off and even if they didn't for the previous reasons, they still "cover" him. The other person can personally sue the driver for injuries, etc. not covered (as in the policy was not large enough to cover damges etc.) by the insurance company.
But to give you a short answer, bankruptcy can't erase damages for personal injury that type of thing. My first piece of advice would be to contact the company that I had insurance with at the time and get some specifics and go from there.

[StaciMM]

The attorney consultation is certainly the best advice. I have a sneaking suspicion it would NOT be dischargeable in BK.

The following are nondischargeable, and sound like they may apply to your friend:

Fines and penalties imposed for violating the law, such as traffic tickets and criminal restitution, and
Debts from willful or malicious injury to another person or another person's property;

Friday, one of my co-workers told me of an incident 2 years ago, where he ran a red light, smashed into a company van and totaled it. Thankfully, the driver walked away from it.

Now the company sends him a letter about once a month, demanding $17,500 in repayment for the damage. Needless to say, he doesn't have it. He then asked me, "Would a BK 7 wipe it out?"

I told him I didn't know, but would ask here...But he'd be better off seeing a lawyer anyway.