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  1. #1

    Default Can You File for Bankruptcy when You Have Considerable Income but are Being Sued

    My question involves bankruptcy in the state of: California

    was in a small airplane crash (cessna 172). i was the owner and pilot of the cessna. my passenger (also a pilot, but didnt wear his shoulder belt) was injured now suing my insurance company.

    aircraft insurance max coverage for each passenger is $100k. the amount of the airplane is half at $25k to me, his attorney demanded $1million. passenger's medical insurance covered 100% of medical bills already.

    I currently earn $79k/annually can i file bankruptcy? i pay rent in an apartment, no property ownership other than a car. expenses are $150k in student loans and taxes owed.

    if the judgement is against me, there's no way i can pay $1mil.

    can i file bankruptcy, do i have to sell my car, give my life savings over? i was saving for a home.

  2. #2
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Lawsuit - Can I File Bankruptcy if I'm Working - California

    Yes, you can file while you're working.

    However, I'm not entirely sure you can actually discharge that type of debt - you absolutely NEED to speak with an experienced BK attorney.

    You can also ask the folks at bkforum.com. There are several attorneys who post there, although I suspect that they'll also advise you to run - not walk - to an attorney asap.

  3. #3
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Lawsuit - Can I File Bankruptcy if I'm Working - California

    Quote Quoting undercrash
    View Post
    My question involves bankruptcy in the state of: California

    was in a small airplane crash (cessna 172). i was the owner and pilot of the cessna. my passenger (also a pilot, but didnt wear his shoulder belt) was injured now suing my insurance company.

    insurance max coverage for each passenger is $100k. his attorney demanded $1million.

    I currently earn $79k/annually can i file bankruptcy? i pay rent in an apartment, no property ownership other than a car. expenses are $150k in student loans and taxes owed.

    if the judgement is against me, there's no way i can pay $1mil.

    can i file bankruptcy, do i have to sell my car, give my life savings over? i was saving for a home.
    Yes, you can file for bankruptcy. Talk to a bankruptcy attorney about what you will be able to keep. Normally, you get to keep your car unless it has a really high equity. Whether or not you get to keep any of your savings depends on your exclusions, and a bankruptcy attorney is better able to assess that.

    Also, talk to the attorney that your insurance is providing. The extent of your passenger's injuries will have a great deal to do with whether or not they could actually get a 1 million dollar judgment.

  4. #4
    Join Date
    May 2008
    Location
    los angeles, ca
    Posts
    18

    Default Re: Lawsuit - Can I File Bankruptcy if I'm Working - California

    how likely will an attorney go after me to try to get a million if i dont have much or any assets?

    how do i keep them from garnishing my wages? the injured passenger is a friend and 83 yrs old.

  5. #5
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Lawsuit - Can I File Bankruptcy if I'm Working - California

    A bk will end your liability for this obligation but the injured party will still be able to claim against the policy. The problem is that no one can predict the likelihood that the injured party would seek compensation over the policy limits. Only time will tell that one.

    Whether or not your assets will be protected if you file bk depends on what exemptions you can use and, if a particular item is not covered by an exemption, the value of that item and what chapter bk you file.

    You are currently in panic mode. I can tell this by the urgency of your words both here and at bkfourm. Please relax. The fact that you and your friend walked away from a plan crash is a miracle in and of itself. What comes next is a walk in the park and nothing is happening over night. Let your insurance carrier do its job and if it eventually falls to you, you can consider the bk. In the mean time and as others have suggested, start consulting with bk attnys. Consultations are usually free.

    Des.

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