Bankrupcy impact on Criminal and Civil suits

[parent_in_mn]

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

The following is a breif account of a legal proceeding involving our 23 year old son. We are trying to determine options available to him.

About a year ago our son pled guilty to a “failure to yield” in which a motorcyclist lost his life when he ran into the side of our son’s car. The deceased’s wife has recently rejected our son's insurance company’s offer of $50,000 for bodily injury (policy max). She rejected it because it requires that she sign a full release of the criminal restitution ($26,000 that was ordered by the court) and agree not to bring a civil suit against him in the future. Our son is very sensitive person so this last year has been pure agony for him. However, since he has lost his job and has no money, we are trying to help him determine what options might be open to him. So, two questions:
1. Current judgement to pay $26,000 Criminal restitution: Would a chapter 7 bankruptcy relieve a judgment to pay these damages?
2. If she brings a Civil suit of Wrongful death: Would a chapter 7 bankruptcy relieve any resulting judgment to pay damages?

Any other thoughts are appreciated. Thank you in advance.

[Proserpina]

Originally Posted by parent_in_mn

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

The following is a breif account of a legal proceeding involving our 23 year old son. We are trying to determine options available to him.

About a year ago our son pled guilty to a “failure to yield” in which a motorcyclist lost his life when he ran into the side of our son’s car. The deceased’s wife has recently rejected our son's insurance company’s offer of $50,000 for bodily injury (policy max). She rejected it because it requires that she sign a full release of the criminal restitution ($26,000 that was ordered by the court) and agree not to bring a civil suit against him in the future. Our son is very sensitive person so this last year has been pure agony for him. However, since he has lost his job and has no money, we are trying to help him determine what options might be open to him. So, two questions:
1. Current judgement to pay $26,000 Criminal restitution: Would a chapter 7 bankruptcy relieve a judgment to pay these damages?
2. If she brings a Civil suit of Wrongful death: Would a chapter 7 bankruptcy relieve any resulting judgment to pay damages?

Any other thoughts are appreciated. Thank you in advance.

Your son needs an attorney - generally a judgment or fine resulting from a criminal action cannot be discharged, whether it be ch 7 or 13. He's going to be paying. Though I can understand where you're coming from this is a consequence of his actions and he shouldn't be able to rid himself of the debt/punishment easily. Your son has something her husband will never have - a future. He's not the victim here.

There is one option available - you could loan him the money to pay his restitution/liabilities.

(an unsolicited bit of more practical advice: it would probably be better if you left out how sensitive he is and how this past year has been agony; what he's going through pales in comparison to the agony he caused that widow)

[parent_in_mn]

Thank you for your thoughts. I have to apologize for mentioning my son’s state of mind. When I re-read my post from that standpoint, I see that you could think I was looking for sympathy for my son. However my intention was to let readers know that he is hurting because he caused a life to end, and because of the pain he has caused for her and his parents.

Oh, and on your suggestion of us loaning him money . . . we are both retired and on a fixed income. We don’t have the money to loan.

[ecmst12]

I hope he has since increased the limits on his auto policy.

[Proserpina]

Originally Posted by parent_in_mn

Thank you for your thoughts. I have to apologize for mentioning my son’s state of mind. When I re-read my post from that standpoint, I see that you could think I was looking for sympathy for my son. However my intention was to let readers know that he is hurting because he caused a life to end, and because of the pain he has caused for her and his parents.

Oh, and on your suggestion of us loaning him money . . . we are both retired and on a fixed income. We don’t have the money to loan.

And thank you for such a gracious response - I did re-read my own reply over and over and somewhat agonized over the level of emotion; ideally emotion is left out of the law but sometimes (as you're aware!) accomplishing this is a Herculean task and we're not always successful.

With that said, your son is, to be blunt, not going to be able to do much about this except pay what is eventually decided. As mentioned criminal restitution debts such as these will not be discharged in bankruptcy but this can become somewhat complex if the debt becomes a civil judgment - even though the majority of civil judgments are dischargeable, the higher courts have generally ruled that a civil judgment stemming from a criminal restitution order will not be discharged.

All you can really do - at least at this point - is try to ensure your son has competent counsel.