As a result of increased public outrage at the toll that drunk driving is taking on American highways, Congress specifically excludes debts incurred while driving under the influence of alcohol from the bankruptcy discharge (see Bankruptcy Code 523(a)(9). The rule applies to chapter 7 and chapter 13 bankruptcy cases.

The exception to discharge includes unlawful driving while under the influence of a drug or other substance, but only applies in cases where death or personal injury has resulted in debt. Thus, debts for property damage are dischargeable. BACPA broadened the 523(a)(9) to include operating a vessel or aircraft and also made debts within the scope of section 523(a)(9) priority debts. Bankruptcy Code section 523(a)(9) applies only if the debtor actually operated the motor vehicle and does not apply to situations in which third parties were behind the wheel. At a minimum, the Code requires that the debtor was intoxicated under the law of the jurisdiction in which the incident occurred. In many cases, a judgment does not specify whether the local standard for intoxication was met. In those cases, the issue of unlawful intoxication may have to be litigated seperately in order to determine dischargeability.