Legal Question in Bankruptcy in California
Is a ''Punitive Damage'' court rulling discharable with bankruptcy ?
If you lose a civil case, and get a judgement of a amount of money againest you, is that discharable through bankruptcy ? If there is a punitive damage judgement in addition, is that discharable with bankruptcy also ?
Thank You,
3 Answers from Attorneys
Re: Is a ''Punitive Damage'' court rulling discharable with bankruptcy ?
generally not. depends on the type of claim it was
Re: Is a ''Punitive Damage'' court rulling discharable with bankruptcy ?
It depends on what the basis of the underlying judgment was and what chapter of bankruptcy you file.
Re: Is a ''Punitive Damage'' court rulling discharable with bankruptcy ?
Thanks for your posting. I hate to get technical here, but I have to to answer your question.
Under 11 U.S.C. �523(a)(6), you cannot discharge a debt in bankruptcy from a "wilful and malicious" act and an intent to cause harm to another, IF the creditor files the appropriate objection to the discharge. Punitive damages are normally from some act that is also "wilful and malicious."
That leads me to my next point -- the fact that you had punitive damages doesn't necessarily mean anything. It's what the punitive damages were for that make it non-dischargeable. For example, if the punitive damages were due to some sort of fraud, the cases are clear that fraud is non-dischargeable in bankruptcy.
I hope that helps, and feel free to email if you have any other questions.