Anna, TX Bankruptcy Law Firms & Lawyers

It depends. If there is any finding that the there was some intention in the accident, the insurance companies may be able to file a complaint for the Court to rule their claims non-dischargeable. If there was no intention or gross negligence, for example, it is likely that it would be discharged along with all other debts. However, that does not happen automatically and the insurance companies need to make a cost-benefit analysis to figure out if it is worthwhile to pursue such a complaint as it involves retaining an attorney and going all the way through trial if you defend, which can be quite expensive for everyone involved. It most likely would cost more than $14,600 and then the creditor has to worry about whether such judgment can be collected from you.

?1301 of the bankruptcy code generally prevents a creditor from going after a co-debtor/co-signer while the Chapter 13 is progressing. The lender can file a motion to lift the automatic stay and if granted then pursue their normal collection efforts. However, if the vehicle is being paid for through the plan then the odds are not very likely that the judge will grant the relief.

First of all, if your husband's attorney is doing anything other than trying to get the best result for your husband, he's committing an ethical violation! His job is to get the best result for your husband. I think it may be a terrible decision to dismiss the Chapter 13 but there is no way to tell. You have a bk attorney so have him/her help you out with this. If they don't know then you need your own bk attorney that is familiar with family law to help you.