Debts from a DUI are among the hardest to wipe out in bankruptcy. Federal law protects several categories of DUI-related debts in bankruptcy from discharge: injuries and deaths caused by intoxicated driving, government fines and fees, and criminal restitution all survive a bankruptcy case. Property damage is the one place where a debtor sometimes gets relief, and Chapter 13 offers more room than Chapter 7 to make that happen.
Injury and Death Claims Follow You Through Bankruptcy
The core rule sits in 11 U.S.C. § 523(a)(9), which blocks discharge of any debt for death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft when that operation was unlawful because the debtor was intoxicated from alcohol, a drug, or another substance.1Office of the Law Revision Counsel. 11 U.S.C. 523 – Exceptions to Discharge
A creditor keeping this kind of debt alive must show two things: that the debtor was operating the vehicle, and that the debtor was legally intoxicated at the time. Most jurisdictions set that line at a blood alcohol concentration of 0.08 percent, though impairment from drugs or a combination of substances also qualifies. A prior DUI conviction helps but is not required; the bankruptcy court can make its own intoxication finding on the evidence.
A $250,000 jury award for injuries from a drunk-driving collision does not shrink, restructure, or expire in bankruptcy. It stays until it is paid. And unlike some other exceptions, this one is automatic — the creditor does not have to file anything special in the bankruptcy case to preserve the debt.
Government Fines, Fees, and Program Costs Survive
A separate provision, 11 U.S.C. § 523(a)(7), shields fines, penalties, and forfeitures payable to a governmental unit from discharge, so long as they function as punishment rather than reimbursement for the government’s actual losses.1Office of the Law Revision Counsel. 11 U.S.C. 523 – Exceptions to Discharge The typical DUI case generates several obligations that fall in this category:
- Court-ordered fines, which vary widely by offense level and jurisdiction and often run from several hundred to several thousand dollars.
- License reinstatement fees, typically ranging from about $55 to $130, paid to the DMV before you can drive again.
- Administrative surcharges that some states impose on your driving record for years after a conviction.
- Ignition interlock installation and monitoring costs, generally $60 to $150 per month for the required period.
- Mandatory alcohol education and treatment program fees ordered as part of sentencing.
Filing bankruptcy does not reduce these amounts, restructure the payment schedule, or eliminate them. The full amount remains due.
Criminal Restitution Cannot Be Discharged
Restitution ordered as part of a criminal sentence is nondischargeable whether the case was federal or state, but the legal path differs.
Federal restitution is covered directly by 11 U.S.C. § 523(a)(13), which makes any restitution order issued under Title 18 of the United States Code nondischargeable.1Office of the Law Revision Counsel. 11 U.S.C. 523 – Exceptions to Discharge
State restitution — which is what most DUI defendants face — is protected under § 523(a)(7). In Kelly v. Robinson, the U.S. Supreme Court held that state criminal restitution orders, even those directed to compensate victims, are nondischargeable because they are imposed as part of a criminal sentence and serve a penal purpose.2Justia U.S. Supreme Court. Kelly v. Robinson, 479 U.S. 36 (1986)
Payments continue on the schedule set by probation or the sentencing court. Falling behind can trigger a probation violation, and the bankruptcy court has no authority to override a criminal sentencing judge’s payment order.
Property Damage Is the Exception
Here the law shifts. Section 523(a)(9) reaches only death and personal injury; property damage is not covered. A property owner whose parked car was totaled or whose storefront was hit by an intoxicated driver has to fall back on 11 U.S.C. § 523(a)(6), which blocks discharge for “willful and malicious injury” to another person or property.1Office of the Law Revision Counsel. 11 U.S.C. 523 – Exceptions to Discharge
That standard is substantially harder. The creditor has to prove not just recklessness or negligence, but that the debtor intended to cause the harm or knew harm was substantially certain to result. Courts have generally held that driving drunk, by itself, does not prove intent to destroy a specific piece of property. Insurance companies pursuing subrogation claims for DUI-related property damage frequently lose these arguments.
A $20,000 property damage debt from a DUI collision is often dischargeable in Chapter 7 because the creditor cannot clear the willful-and-malicious hurdle. A personal injury claim arising from the same collision is completely protected.
Chapter 7 vs. Chapter 13 for a DUI Debtor
In Chapter 7, every exception in § 523(a) applies. Personal injury and death claims, government fines, restitution, and any property damage debt the creditor can prove was willful and malicious all survive the discharge.
Chapter 13 works differently. You repay creditors over three to five years from disposable income, then receive a discharge on remaining balances.3United States Courts. Chapter 13 Bankruptcy Basics The Chapter 13 discharge under § 1328(a) has its own, shorter list of exceptions, and § 523(a)(6) is not on it.4Office of the Law Revision Counsel. 11 U.S.C. 1328 – Discharge Willful and malicious property damage debts that would stick in Chapter 7 can be wiped out at the end of a Chapter 13 plan.
The advantage stops at property damage. Section 1328(a)(4) still blocks discharge of debts for willful or malicious injury that caused personal injury or death.4Office of the Law Revision Counsel. 11 U.S.C. 1328 – Discharge Government fines and criminal restitution remain nondischargeable in Chapter 13 as well.
For a debtor whose largest DUI liability is property damage rather than bodily harm, this can make Chapter 13 the smarter filing even when Chapter 7 would otherwise be available.
What Bankruptcy Pauses and What It Doesn’t
Filing a bankruptcy petition triggers an automatic stay that halts most collection activity. DUI matters split in two directions.
Criminal prosecution is exempt from the stay. Section 362(b)(1) makes clear that filing bankruptcy does not stop any criminal action or proceeding against the debtor.5Office of the Law Revision Counsel. 11 U.S.C. 362 – Automatic Stay The DUI case moves forward on its own timeline.
Civil lawsuits, including a victim’s personal injury suit, are paused. The victim has to ask the bankruptcy court to lift the stay before continuing. Courts routinely grant those motions in DUI cases because the underlying debt is nondischargeable anyway. The pause delays collection; it does not eliminate the liability.
How Creditors Challenge Discharge
Not every nondischargeable DUI debt is automatic. Personal injury and death claims under § 523(a)(9), government fines under § 523(a)(7), and restitution orders are preserved without any action from the creditor.
Property damage claims relying on § 523(a)(6) are different. The creditor has to file an adversary proceeding — a lawsuit inside the bankruptcy case — and prove the willful and malicious standard. Under Federal Rule of Bankruptcy Procedure 4007(c), the complaint must be filed within 60 days after the first date set for the meeting of creditors.6Office of the Law Revision Counsel. Federal Rules of Bankruptcy Procedure – Rule 4007 Miss that deadline, and the debt is discharged regardless of the underlying conduct. Extensions after the fact are extremely rare.
This is where creditors most often lose their leverage, either by missing the deadline or deciding the cost of litigating is not worth the potential recovery.