Exception To Discharge Under Section 523(9)

Section 523(9) states as an exception to discharge, death or personal injury caused by the debtor’s operation of a motor vehicle while debtor was intoxicated.  Note closely that property damage claims do not fall within this exception.  Thus, if the debtor damages another’s car or other property while intoxicated, the debt can be discharged.  Further, take a close look at the word intoxicated.  This is not limited to alcohol.  One can make an argument that the slightest amount of a controlled substance would be enough to trigger a non-dischargeable claim. 

In many cases, we are filing bankruptcy on behalf of clients that have had their driver’s licenses suspended for lack of financial responsibility (no insurance).  The bankruptcy filing will undo the suspension and allow the debtor to legally drive once again.  This assumes that the debt is not one that is excepted from discharge under
Section 523(9).