lost job, paycheck, and insurance, (like 10M+ others!)broke leg => $30k+ in bills !how do I minimize my liability?

Asked on June 12, 2009 under Personal Injury, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

By "minimize my liability" I assume you mean your debts.  If you truly have no money and no assets then you may want to consider bankruptcy.  Given your facts as you presented them, Chapter 7 seems a very real possibility for you.

Chapter 7 bankruptcy is a liquidation proceeding.  The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to the creditors.  The debtor receives a discharge of all dischargeable debts.  The underlying policy of bankruptcy law is that the honest debtor who is in debt beyond his/her ability to repay the debt should be given a fresh start through the discharge of debts in a bankruptcy proceeding.

Note:  Not all debts are dischargeable.  Generally speaking, the following debts will not be discharged: taxes; spousal and child support; debts arising out of willful misconduct and or malicious misconduct by the debtor; liability for injury or death from driving while intoxicated; nondischargeable debts from a prior bankruptcy; student loans; criminal fines and penalties and forfeitures.

Without more details, it's hard to advise filing bankruptcy with complete certainty.  Your best bet would speak to a bankrutcy attorney in your area.  He'll best be able to consult with as to all of your options.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.