Forney, 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.

Whether a party is an indispensable party is not a bankruptcy question, per se. In this case you should have your lawyer seek a stay of the action against you until such time as your co-defendant can participate in a trial. A finding of fraud would render the plaintiff's claims against your co-defendant non-dischargeable and the plaintiff's lawyer should be considering filing an adversary action in the bankruptcy court or seeking relief from stay. Meanwhile, your lawyer needs to do whatever he/she can to postpone trial so your defense can be asserted.

If your first case was under Chapter 7, you have to wait 8 years before filing again (measured from date of filing the first case to date of filing the second case).