Skip to main content

If I already have a court judgement against me from a creditor, will that be wiped out once I declare a Chapter 7 bankruptcy?

Lake Worth, FL |

I have another judgement pending and need to know if I should rush to file the bankruptcy or if these judgements will be wiped out once I file bankruptcy even though they occurred prior to it.

Attorney Answers 3

Posted

Most ordinary judgments will be wiped out. It depends on what they are for.

Like if defrauded someone, that can't be discharged.

The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here. Please visit my web site: www.avanesianlaw.com for more information about my services.

Mark as helpful

1 found this helpful

6 lawyers agree

Posted

The problem isn't eliminating the debt tied to the court judgment, it is eliminating the consequences from the judgment. A smart creditor will take the judgment and turn them into liens against your home or other real estate. These liens have to be specially removed during the bankruptcy process, and that will cost you extra. I have no problem telling people it is okay to pay additional legal fees, but you might not agree with that. Another thing a smart creditor can do is clean out or at least freeze your bank account. Or begin garnishing your wages. I would rush to file for these reasons alone. Sooner or later, your luck is bound to get really bad unless you take immediate action. Hope this perspective helps!

Mark as helpful

3 lawyers agree

1 comment

Michael Avanesian

Michael Avanesian

Posted

That's a good point.

Posted

If the judgments are for a debt that is not dischargeable n bankruptcy, then they won't be wiped out. Most judgments are dischargeable. You don't have to file before the creditor gets the judgment to discharge the debt. However, you do want to file before the creditor does something with the judgment: garnish wages, bank accounts, puts a lien on your property, puts you into a receivership, etc...

Mark as helpful

1 found this helpful

1 lawyer agrees

Bankruptcy and debt topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics