My wife owed payment to an attorney from another city. I found at our county clerk's online site that a final judgement had been granted. We own our house together and it is currently in foreclosure but we are trying to work out an arrangement with our lender. I'm concerned that the lender will refuse to work with us due to the judgement. The judgement has not, at least yet, been attached to our house. It's not that I don't want to pay the original attorney's fee - I don't have it to give them. The only real asset I have is our home.
Yes, bankruptcy will discharge the judgment. Also, if they do record the judgment and attach a lien to the property, you can remove it by claiming the homestead exemption. Filing the bankruptcy will also temporarily slow down the foreclosure process (not for long but usually at least 45-60 days). If you haven't already sought a mortgage modification mediation through foreclosure defense you can request a mediation through the bankruptcy court as well.
I would recommend consulting further with a bankruptcy attorney to assist you with these matters.
Usually, when people file, they already have judgments against them.
Once you file, there is an automatic stay entered stopping any collection efforts.
If you want to keep the house, have you lawyer check to make sure the judgment is not a lien.
If it is, you can have your lawyer file a motion to avoid it and set it aside.
Family Law Attorney
Bankruptcy will wipe out the judgment, AND remove any lien. Be sure to tell you bankruptcy attorney about this judgment.
Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.
Yes it will but sometimes your attorney will have to file a Motion to avoid Lien if the Judgement has gotten that far and liens have been placed on the property. It is not too hard, but it isn't exactly fun so ask them how much extra it will be and expect anywhere from $150 to $500 depending on the complexity.