Court judgement and bankruptcy

court judgement and bankruptcy

Bankruptcy Will Discharge Most Lawsuit Judgments. The majority of lawsuit judgments against bankruptcy debtors involve unpaid debts. If you don’t pay your credit cards, medical bills, or other personal loans, the lender or creditor can bring a breach of contract lawsuit against you. It’s much easier to take care of a debt in bankruptcy before you lose a lawsuit and receive a money judgment. Even so, if you already have a judgment against you, filing for bankruptcy can still help. In this article, you’ll learn what bankruptcy can do to help with civil lawsuits and judgments. Understanding How Creditor Lawsuits Work. Mar 30,  · If a creditor sued you and got a judgment before the bankruptcy case is filed, then you may be able to wipe out that liability. But the judgment is a separate matter. It is a record of an official result of a lawsuit in court. Even if you wipe out your liability for the debt, the record of your judgment remains in place. court judgement and bankruptcy

The creditor cannot freeze your bank account, seize your wages, or take any further action against you. Under California law, a judgment becomes a lien on land, a house or other building you own only if the judgment creditor files a n Abstract of Judgment. In other states such as New York, however, the judgment is automatically a lien against property. A judgment does not last forever. In both states, however, the creditor can apply for an extension of the judgment to get 10 more years to collect the debt.

Learn more about that here. You should expect to provide to your lawyer at least all of the following:. Depending on when the judgment is issued, taking care of the motion in bankruptcy court may or may not be made a part of your retainer agreement. You want to make sure your lawyer knows about all pending lawsuits and outstanding judgments so that he or she can properly assess your situation.

Read the retainer agreement carefully and ask questions. In addition to eliminating financial responsibility for a money judgment, Chapter 7 bankruptcy can also eliminate outstanding judgment liens against your home or your car. Avoiding a judgment lien requires that you meet certain conditions and claim the property as exempt.

This can be confusing and might require assistance or advice from a bankruptcy attorney. The Basics Taxes. By Jackie Lohrey. Show Comments. Good luck.

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