Generally a judgment plus interest will be discharged in Bankruptcy. There are exceptions depending upon the nature of the lawsuit. As to the amount, add 10 % per year to the judgement, do not compound, and you will be close enough.
Yes, if there was a judgment against you in 2009, and if you list the judgment on your bankruptcy schedule, the debt can be discharged including the post judgment interest.
Note that certain debts are not dischargeable because Congress has determined they are types of debts that should not be discharged because of public policy reasons. These debts are listed in Section 523 of the Bankruptcy Code and usually require that a debtor prove the debt should not be discharged. Examples are:
(A) spousal and child support obligations;
(B) certain tax debts;
(C) most educational loans;
(D) debts related to injuries or death caused by driving while intoxicated; and
(E) debts arising from fraudulent conduct.
Also, the discharge is not automatic from the date you file for bankruptcy. You will not be able to obtain a discharge until and unless you comply with all of the requirements for bankruptcy including completing the Credit Counseling and Personal Financial Management courses, as well as attending the 341(a) Meeting of Creditors.
The earliest date that a discharge will be entered on the case docket is shortly after the sixtieth (60th) day following the first date set for the 341(a) Meeting of Creditors.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult with your own attorney.
Include your best estimate of what the total debt is. What is important is that when you file for BK the creditor is listed and notified, not necessarily the exact amount owed to them.