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Q: Can bankruptcy discharge debts for injuries from uninsured driving in DE?
Can filing for bankruptcy discharge debts for personal injuries caused by a debtor driving without car insurance in Delaware?
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James L. Arrasmith
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Yes, you can often discharge a negligence-based personal injury debt in bankruptcy even if you were driving without insurance. Federal bankruptcy law controls dischargeability, and being uninsured by itself does not make a personal injury claim survive your discharge.
Two key exceptions can block discharge. If the crash involved intoxicated driving under state law, any debt for death or personal injury from that incident is not dischargeable in either Chapter 7 or Chapter 13. If a court finds you acted willfully and maliciously, such as intentionally causing harm, that debt also survives bankruptcy.
Different rules apply to government fines and penalties tied to driving without insurance. Civil or administrative penalties payable to the state are generally not dischargeable in Chapter 7, and criminal fines or restitution survive in both Chapter 7 and Chapter 13. Some civil penalties may be dischargeable in Chapter 13, but proof-of-insurance and licensing requirements can still remain until satisfied.
If an injured party wants the debt declared non-dischargeable, they must file a timely adversary proceeding in your case, so deadlines matter. You should evaluate the exact facts of the crash, the chapter you plan to file, and any state penalties or licensing consequences so you understand what will and will not be wiped out.
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