We thought we had good business liability insurance but when my husband's helper failed to bring a box of books back into a home and they were ruined from rain, we were sued for $5000 and our insurance company said that was an extra endorsement that we didn't have on our policy and refused to cover it. The homeowner's insurance paid the claim and then they came after us. My husband made a payment arrangement out of distress because the lawyer was sending letters stating that he would have my husband's driver's license revoked. We made payments on it for over a year at $150 per month but then the economy tanked, my husband's work greatly diminished, he started having serious health issues that now take up every last dime we have, he went on disability,and we have almost lost our home three times in the past couple of years. Paying on this unreasonable debt to us was not our first priority. Since then the lawyer has filed a judgment against my husband. We were not served any papers, he just filed it at the court house based on the conditions that he had signed the payment agreement to. We are in serious debt right now and very scared over this judgment. We are looking into bankruptcy as our only option left. Would bankruptcy remove this judgment? We live in North Carolina.Edit for additional information: We are currently caught up on our house but consistently have to pay late. My husband's name is on the mortgage but I am on the deed and other documents as well. We own our automobiles, both worth less than $5000. We also had an automobile that was repossessed last year. There isn't any other property or insurance policies. I am also a student and have manged my education with pell grants so far.
The short answer to your question is that filing a Chapter 7 bankruptcy would most likely eliminate your obligation to pay the $5000. Filing a Chapter 7 bankruptcy would also allow you to discharge any credit card debt that may have accumulated as your monthly income started to decrease.
However, if you are behind on your house at the time of filing a Chapter 7 bankruptcy, you may lose your house.
Another bankruptcy option that you may want to consider is a Chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to pay back a portion to all of your debt over a 3-5 year period based upon your level of income. The benefit of filing a chapter 13 is that you are able to catch up on any back house payments through the payment plan so that you do not lose your house in the bankruptcy.
Contact me at 480-263-1699 for a free consultation. You and I do not have an attorney-client relationship formed by our communications on this website. Advice given by me on this website is general advice based on partial information. You should not rely on any advice given without first hiring a lawyer in the area where the case is pending, and providing that lawyer with full information.
Would that your question were readily answerable with the information you have chosen to disclose. But, no. If you are considering bankruptcy, nothing short of a full case review by an attorney experienced in both Chapters 7 and 13 will meet your needs. If you do not know such a lawyer, use the attorney-finder at www.nacba.org. I am a longtime proud member of NACBA and trust my NC colleagues to advise accurately and aggressively protect their clients.
Best wishes for a favorable outcome, and please remember to designate a best answer.
This answer is offered as a public service for general information only and may not be relied upon as legal advice.
Bankruptcy is often effective at dealing with judgments. However, whether any given judgment would be "removed" depends on the facts of the case. For one, sometimes judgment liens can survive bankruptcy, the existence of which can depend on what real property one owns. A judgment itself is only voided to extent a debt is discharged.
From what you have said about your overall financial situation, getting in touch with a local bankruptcy attorney is a wise idea. Consultations are often free. A bankruptcy attorney can also examine the circumstances of the judgment and advise you if proper procedures were followed.
I'm a <a href="http://www.eastwakebankruptcy.com">North Carolina bankruptcy attorney</a>, licensed to practice law in NC only and concentrating in the areas of bankruptcy and consumer debt law. This post does not create an attorney-client relationship, and is for general information only.
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