Judgment lost question

[CaptJR]

What is the name of your state (only U.S. law)? Pa.

If a person has been sued by an individual and lost. Can that amount be included in Chapter 7?

 

[quincy]

What is the name of your state (only U.S. law)? Pa.

If a person has been sued by an individual and lost. Can that amount be included in Chapter 7?

Maybe. For example, if you were sued for defamation and lost, a judgment might not be dischargeable in bankruptcy. Facts matter.

 

[CaptJR]

Maybe. For example, if you were sued for defamation and lost, a judgment might not be dischargeable in bankruptcy. Facts matter.

Judgement was for property damage after insurance company denied claim.

 

[quincy]

Judgement was for property damage after insurance company denied claim.

Under the Bankruptcy Code, Section 523(a)(6), debts incurred as a result of "willful and malicious injury by the debtor to another entity or to the property of another entity" is not dischargeable. Willful and malicious injury is defined as injury that is wrongful, intentional, causes injury, and is done without just cause or excuse.

If the insurance company denied the claim for property damage, I would want to know why it was denied. There is a good chance you would not be able to discharge the judgment in bankruptcy, though, based strictly on the little you have provided in your posts.

 

[CaptJR]

Under the Bankruptcy Code, Section 523(a)(6), debts incurred as a result of "willful and malicious injury by the debtor to another entity or to the property of another entity" is not dischargeable. Willful and malicious injury is defined as injury that is wrongful, intentional, causes injury, and is done without just cause or excuse.

If the insurance company denied the claim for property damage, I would want to know why it was denied. There is a good chance you would not be able to discharge the judgment in bankruptcy, though, based strictly on the little you have provided in your posts.

Sorry I was not specific to begin with. OK, Owner of car (my daughter) loaned her car out. Driver (at fault) wrecked hitting another car. Daughter cooperated with her insurance company as best she could but neither her nor the insurance company can get the person she loaned the car to (driver) to respond. Insurance company will likely deny claim do to the noncooperation of the driver. The owners of the car he hit (or his insurance company) will sue my daughter and she will loose.

That is about the best I can describe situation I think. (it is her bankruptcy I am talking about)

Thank you,
JR

 

[Zigner]

Sorry I was not specific to begin with. OK, Owner of car (my daughter) loaned her car out. Driver (at fault) wrecked hitting another car. Daughter cooperated with her insurance company as best she could but neither her nor the insurance company can get the person she loaned the car to (driver) to respond. Insurance company will likely deny claim do to the noncooperation of the driver. The owners of the car he hit (or his insurance company) will sue my daughter and she will loose.

That is about the best I can describe situation I think.

Thank you,
JR

If that happens and your daughter loses, then the insurance company will pay the judgment.

It's too bad you didn't keep this in your other thread

 

[CaptJR]

If that happens and your daughter loses, then the insurance company will pay the judgment.

It's too bad you didn't keep this in your other thread

I just thought with the change of subject from insurance to bankruptcy I should switch.

Anyway, I think I am a little lost with your above statement that the insurance company will pay the judgement.

If her insurance company will end up paying the judgement anyway, why bother with the claim denial and inevitable subsequent suite?

 

[justalayman]

Sorry I was not specific to begin with. OK, Owner of car (my daughter) loaned her car out. Driver (at fault) wrecked hitting another car. Daughter cooperated with her insurance company as best she could but neither her nor the insurance company can get the person she loaned the car to (driver) to respond. Insurance company will likely deny claim do to the noncooperation of the driver. The owners of the car he hit (or his insurance company) will sue my daughter and she will loose.

That is about the best I can describe situation I think. (it is her bankruptcy I am talking about)

Thank you,
JR

why will your daughter lose?


but if sued, her insurance company is obligated to provide for her defense.

and under the same reason they will provide her with legal defense, if she is found liable they will pay the judgment up to the amount of the policy.

 

[quincy]

Sorry I was not specific to begin with. OK, Owner of car (my daughter) loaned her car out. Driver (at fault) wrecked hitting another car. Daughter cooperated with her insurance company as best she could but neither her nor the insurance company can get the person she loaned the car to (driver) to respond. Insurance company will likely deny claim do to the noncooperation of the driver. The owners of the car he hit (or his insurance company) will sue my daughter and she will loose.

That is about the best I can describe situation I think. (it is her bankruptcy I am talking about)

Thank you,
JR

Here is a link to your other thread, CaptJR: https://forum.freeadvice.com/auto-accidents-vehicle-claims-1/non-cooperation-question-621352.html

I agree with Zigner that, if your daughter was insured, the insurance company will pay the claim although the injured party can still file a civil suit to cover what the insurance doesn't.

What was the extent of the damage? Any personal injury? (I suppose these questions are better addressed in your other thread)

Bankruptcy should always be a last-resort solution to money problems. Before your daughter considers bankruptcy over the accident, I would wait to see how the insurance companies handle the claim(s) - this is assuming she does not have other reasons for considering filing a Chapter 7.