Can a small claims judgement be listed as a creditor when filing for bankruptcy?

Asked almost 2 years ago - Atlanta, GA

If you lost a small claims case and owe money can you list that when you file for bankruptcy?

Attorney answers (7)

  1. Kathryn Ursula Tokarska

    Contributor Level 16

    8

    Lawyers agree

    Answered . You must, not just should, list all debt obligations. Whether it is dischargeable in bankruptcy depends on what kind of debt it is.

  2. Atousa Saei

    Pro

    Contributor Level 16

    8

    Lawyers agree

    Answered . Short answer: You must list all your debts. You may want to consult with a local bankruptcy lawyer to help with your case.

  3. Mher Asatryan

    Contributor Level 11

    7

    Lawyers agree

    Answered . Judgments can be discharged through your bankruptcy filing. However, there are some exceptions. For example, the judgment may not be dischargeable if it resulted from fraud, failure to pay family support obligations, such as alimony, spousal support, and child support, or failure to pay student loans.

    DISCLAIMER The answer given above serves for educational purposes only and is meant to provide general information... more
  4. Alan D. Walton

    Pro

    Contributor Level 19

    7

    Lawyers agree

    Answered . Absolutely. You must list ALL debt. It is often up to the creditor to claim non dischargeability in you bankruptcy. Most small claim winners would not bring such a claim, and if they did, success is usually very limited.

  5. Glen Edward Ashman

    Pro

    Contributor Level 20

    5

    Lawyers agree

    Answered . Not only can you list it, but you MUST list it.

    Let me stress that you need a lawyer. A judgment presents an extra challenge as it is a lien on your assets, and you may need a motion to avoid lien on top of the case itself.

    If you find this answer helpful, please mark it here on AVVO as helpful. In answering you, I am attempting to... more
  6. Robert M. Gardner Jr.

    Contributor Level 18

    5

    Lawyers agree

    Answered . Unless there was a finding of fraud, these claims are simple to discharge by filing a motion to avoid the judicial lien in a bankruptcy case. However, if you do nothing or delay filing bankruptcy, the judgment can end up as a garnishment of your wages and bank account or a lien on your property. Filing bankruptcy or working out a payment plan with the creditor is the only way to avoid these consequences.

    The above information is general in nature. In order to obtain more specific and legal advice upon which to base... more
  7. Parker Evan Bornmann

    Contributor Level 9

    3

    Lawyers agree

    Answered . Not only can you list the small claims case that you lost but you must list all debts when filing for bankruptcy. More than likely the judgement and debt that the person you lost to in small claims court will be discharged in your bankruptcy filing. There are a few exceptions to this rule.

    Many bankruptcy lawyers offer free consultations. Take advantage of a free consultation with a bankruptcy attorney and make sure that your judgement is able to be discharged. An attorney can also weigh your financial situation and make sure that bankruptcy is the right choice for you and advise you as to what chapter of bankruptcy you may want to consider.

    I hope that you found this information useful.

    Thanks,
    Parker Evan Bornmann
    The Bornmann Law Group, PLLC

    Contact me directly at 480-833-8000 for a free (1 Hour) consultation. I have law offices conveniently located in... more

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