It sometimes seems that when it rains it pours. If you are already facing financial issues, the last thing you need is to be charged with a serious crime like driving under the influence (DUI). In most cases, a DUI conviction will bring on a host of additional expenses that have to be dealt with. Read on to find out more about coping with this far from unique situation.
Can You Include DUI-related Debts in a Chapter 7 Filing?
In most cases, legal expenses related to criminal, family, personal injury, and other court cases cannot be discharged with a chapter 7 filing. Legal fees, fines, traffic tickets, and court judgments after a personal injury case are also exempt from chapter 7. However, court judgments pertaining to unpaid debts like medical bills, credit cards, and the like are discharged with chapter 7.
Being convicted of DUI can mean you will end up being thousands of dollars in additional debt as a result and, unfortunately, none of it can be discharged. However, most court systems will work with defendants to cope with their debts using an installment plan. Speak to a criminal defense lawyer to find out more about that. In the meantime, though, a chapter 7 filing can still place you in a better position to deal with your debts than you might expect.
Free Up Your Funds
A chapter 7 bankruptcy filing comes with several huge financial boosts that can certainly ease your overall burden. For example, some people with a lot of debt end up with wage garnishments. That means a creditor can hijack part of your pay from your paycheck to go towards paying a debt. With a chapter 7 filing, all that loss of income goes away. You can soon go back to being paid your full paycheck again.
Also, keep in mind that you will likely locate extra money in your budget due to not having to pay unsecured debts anymore. Deduct from your monthly debits credit card minimum payments, medical bill installment charges, personal loan obligations, some tax debts, and more to get a good idea of how much easier paying your DUI legal obligations might be.
Don't get distracted by your legal problems just when debt relief is in sight. The sooner you act to file chapter 7, the lower the chances you will be impacted by your legal financial issues. To find out more about dealing with DUI debts and filing bankruptcy, speak to a bankruptcy lawyer as soon as possible.