Legal Question in Bankruptcy in Nevada

Re: Am I eligible to declare bankruptcy?

You'll have to have an attorney review the trust to see whether it has spendthrift language that protects it from your creditors. It's also important to see how much discretion the trustee has in making distributions, and what the distributions are for, as all these factors will determine how much power the creditors (and the bankruptcy trustee) has in accessing the trust. If it turns out that bankruptcy is not an option, you should also explore negotiating a lump sum settlement with the creditor--if you do indeed have liability for the accident, they'll probably take a lot less as payment in full, given your financial situation.

Re: Am I eligible to declare bankruptcy?

Yes. You are probably not entitled to all the money immediately anyway.

Re: Am I eligible to declare bankruptcy?

It depends how the trust is set up. If it is a spendthrift trust that limits your monthly benefit and leaves the trustee no discretion, you might be able to file, of course depending on your entire financial picture.

Another issue is that it appears that the accident in which your ex- was involved was a result of driving while intoxicated. One could argue that the debt and injuries he caused were the result of drunk driving which cannot be discharged. However, you were not the driver and, if anything, you were merely negligent by keeping the car in your name and permitting him to use it, and had nothing to do with the drunk driving. Thus, you might argue that your debt (but not his if he were to file BK) should be discharged.

Does Trust fund prevent use of Bankruptcy in Nevada?

In Nevada, you can claim your interest in a Trust fund as part of your "exemptions" set forth in NRS 21.080(2) (to see for yourself, follow this link - http://www.leg.state.nv.us/NRS/NRS-021.html#NRS021Sec080)if the Trust was properly created using the magic word "spendthrift" or other language saying that the trust is not subject to being taken by creditors.

I disagree with my collegues about the debt being for a DUI would be an issue to prevent you from obtaining the benefits of Bankruptcy, since you were not the person who participated in the illegal activity of driving while intoxicated.

If you wish to file in Southern Nevada or need more information, call my office at (702)456-1920.