Most are familiar with the concept of hiding assets in the midst of a divorce. We don’t often hear about hidden assets in personal injury lawsuits, but that’s because the majority of defendants aren’t independently wealthy. Mostly, claims for injury as a result of DUI or other negligence behind the wheel is covered by auto insurance companies. That’s not to say individuals can’t legally be held personally liable for damages over and above that amount, but it often makes little sense to pursue it when defendant has few assets anyway.
However, debts for personal injury caused while driving under the influence is not dischargeable under U.S. Bankruptcy Code Section 523(a)(9). That means if a court has ordered defendant to pay plaintiff a sum in compensation for DUI injuries, that debt can’t simply be wiped clean by bankruptcy, as so many other debts can be. Still, collecting this compensation directly from a drunk driving defendant can be a challenge.
In a recent Palm Beach County DUI lawsuit, an 82-year-old Uber driver killed in a September crash, and defendant’s insurer now accuses defendant of hiding assets to avoid paying insurance claims benefiting the family’s estate. Continue reading →