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Re:Elizabeth Holmes representing herself in Arizona civil case by manigandham on Sunday January 26, 2020 @08:58PM (#22156298)
Does a bankruptcy eliminate a civil judgement? Why wouldn't everyone file and wipe out their civil case debt then? Seems too easy of a workaround.
Re:Elizabeth Holmes representing herself in Arizona civil case by jcranmer on Sunday January 26, 2020 @09:30PM (#22156429)
The answer is "it depends."

11 USC §1328 and 11 USC §523(a) lists several categories of debt that can't be discharged. (I'm not sure when only the subset listed under §1328 applies).

Criminal fines are definitely not erased by bankruptcy. Civil judgements owed to any government agency (including fines) are also definitely not erased. As is anything connected to willful injury (NB: I don't know the scope of 'injury' here, it may be limited to direct physical or other medical injury, or it could mean destruction of property and the like). And anything obtained by fraud isn't erased. Also things like alimony can't be discharged.

Would Holmes's debts incurred by the Theranos suits be dischargeable... I don't know.

Re:Elizabeth Holmes representing herself in Arizona civil case by parsimo2010 on Sunday January 26, 2020 @09:24PM (#22156405)
Bankruptcy can discharge most judgements, but you actually have to be bankrupt. If you have $190 million and have a judgement against you of $200 million, you don't get to file bankruptcy and discharge the whole thing because you can't pay the full amount. You'll end up paying most of the judgement before you are actually bankrupt and can discharge the remaining amount.
Re:Elizabeth Holmes representing herself in Arizona civil case by toomuchtodo on Sunday January 26, 2020 @10:07PM (#22156596)
Caveat: Some assets are protected during bankruptcy proceedings, 401ks federally, IRAs in most states, primary residence up to unlimited value in Florida.

Not legal advice: if you’re going bankrupt with flush 401ks, IRAs, and a luxury residence, Florida is not a bad state to do it in.

Re:Elizabeth Holmes representing herself in Arizona civil case by ranDOMscripts on Sunday January 26, 2020 @10:34PM (#22156691)
Which is why many pro athletes move their residency to Florida the day they sign their multi-million dollar contracts and buy the biggest mansions they can afford.
Re:Elizabeth Holmes representing herself in Arizona civil case by gdilla on Monday January 27, 2020 @09:47AM (#22159687)
That's the bonus. No state income tax of FL is your primary residence.
Re:Elizabeth Holmes representing herself in Arizona civil case by distances on Monday January 27, 2020 @02:26AM (#22157466)
Are pro athletes prone to bankruptcy?
Re:Elizabeth Holmes representing herself in Arizona civil case by closeparen on Sunday January 26, 2020 @09:41PM (#22156488)
A civil judgment is to take someone’s assets, which the creditor can still do in bankruptcy. It’s not to make someone the creditor’s permanent slave. As far as I know, only spousal support can do that.
Re:Elizabeth Holmes representing herself in Arizona civil case by manigandham on Sunday January 26, 2020 @10:14PM (#22156621)
In the US, federal student loans are also not dischargeable through bankruptcy.
Re:Elizabeth Holmes representing herself in Arizona civil case by toomuchtodo on Sunday January 26, 2020 @10:18PM (#22156636)
https://www.npr.org/2020/01/22/797330613/myth-busted-turns-o... (Myth Busted: Turns Out Bankruptcy Can Wipe Out Student Loan Debt After All)

> Just this month, a federal judge in New York discharged more than $220,000 in student loans for a borrower. In her ruling, Chief Bankruptcy Judge Cecelia Morris criticized the fact that even many lawyers "believe it impossible to discharge student loans." She added, "This Court will not participate in perpetuating these myths."

Ruling: https://assets.documentcloud.org/documents/6660178/Rosenberg...

Re:Elizabeth Holmes representing herself in Arizona civil case by AlexCoventry on Sunday January 26, 2020 @09:27PM (#22156418)
Bankruptcy is not an easy matter.

> One factor in considering whether the U.S. Trustee can prevail in a challenge to the debtor's Chapter 7 filing is whether the debtor can otherwise afford to repay some or all of his debts out of disposable income in the five year time frame provided by Chapter 13. If so, then the U.S. Trustee may succeed in preventing the debtor from receiving a discharge under Chapter 7, effectively forcing the debtor into Chapter 13. https://en.wikipedia.org/wiki/Chapter_7,_Title_11,_United_St...

You really don't want to give a Federal officer the power to decide you have too much disposable income for the next five years.

Re:Elizabeth Holmes representing herself in Arizona civil case by throwawayjava on Sunday January 26, 2020 @09:27PM (#22156420)
> Does a bankruptcy eliminate a civil judgement?

It depends.

In the Holmes case, the plaintiff, if they win, will probably argue that at least part of the settlement should be nondischargeable because Holmes committed fraud.

> Why wouldn't everyone file and wipe out their civil case debt then?

Because either:

1) the courts explicitly disallow it in the particular case; or,

2) the combination of non-exempt assets and continued access to credit is more valuable than the settlement amount (in this case, you would end up paying the entire amount during bankruptcy proceedings in any case anyways, and then have a black mark on your credit for no good reason).

Re:Elizabeth Holmes representing herself in Arizona civil case by dragonwriter on Sunday January 26, 2020 @09:35PM (#22156460)
> Why wouldn't everyone file and wipe out their civil case debt then?

Because bankruptcy involves losing your unsecured assets and adverse credit. The same reason not everyone declares assets to erase their dischargeable debts that aren't civil judgements.