Is bankrupcy an option if I’m facing a $13k lawsuit for an accident I caused but did not have insurance for?

I don’t have any money as my wages are being garnished by both state and federal authorities.

Asked on October 13, 2015 under Accident Law, California


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

It would be advisable to file Chapter 7 bankruptcy.  Chapter 7 is straight liquidation which will eliminate certain types of debts such as the judgment in a personal injury / auto accident lawsuit.
You may want to wait until there is a judgment against you before filing bankruptcy, so that you will know the exact amount of the judgment to list in your bankruptcy.

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