Mathis, TX Bankruptcy Law Firms & Lawyers

You should file for bankruptcy immediately if there is no hope that your situation will change. Even if you don't appear in court and the bank wins the lawsuit, you can still file for bankruptcy protection later on.

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.

I'm assuming, although you don't state, that this is a Chapter 7 case.  Your question examplifies a common misunderstanding of the law. In a Chapter 7 case, the Trustee steps into the shoes of the debtor in bankruptcy and, as of the date the case is filed, becomes the owner of any and all assets of the debtor.  If you were on title to a bank account on the date your case was filed, then the Trustee has the sames rights and interest in the money in that account as you do.  Any subsequent transfers of those funds without the Trustee's approval (if it occurred after the bankruptcy case was filed) would be problematic, as you have discovered. Ask yourself this simple question:  Could you have withdrawn money from that joint account legally?  If so, then so can your Trustee. That having been said, your boyfriend had rights in those funds as well, so I don't think it's as cut and dried as the Trustee may think.  Your boyfriend should hire an experienced bankruptcy attorney to represent him at this point. Probably the best thing would have been for your boyfriend to withdraw the money prior to you filing your case and that should have been OK, particularly if he can prove that he is the one who had deposited all the money into the account. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.