Author Topic: Judgements  (Read 368 times)

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NashRicky

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Judgements
« on: March 06, 2018 06:21:53 PM »
I am filing CH7 in April and I have been able to avoid going to court so far by filing motions.  Are there everlasting repercussions from having judgments against a debtor and could they come back to haunt me down the road? Besides the regular problems associated with ch7 bankruptcy.

 

BrokeBob

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Re: Judgements
« Reply #1 on: March 06, 2018 06:27:51 PM »
You should include any debts in BK 7, and that includes judgments.  It also includes anything that could lead to a judgment. 
It you don't include a particular debt, and that debt incurs a judgment AFTER your BK, then you are stuck. 

ironfist

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Re: Judgements
« Reply #2 on: March 06, 2018 09:40:53 PM »
Are you filing BK by yourself or do you have a BK attorney?

BrokeBob is correct - a chapter 7 bankruptcy will discharge all eligible debts, including those reduced to a judgment. However, make sure you know the rules of your court for proceeding.

For example, in my state, you have to file a separate form with the court that lists your judgments and includes a certified copy of the bankruptcy discharge. The chapter 7 case doesn't do it automatically. The same goes for avoiding liens that impair exemptions - this is typically the homestead exemption, which in MN is (believe it or not) set at a reasonable level. They don't automatically get lifted in the bankruptcy case unless you take additional steps to do so.

How these things work in your jurisdiction could be quite different, so make sure you know what procedures to follow.

Could the judgments haunt you down the road? Sure, they'll be on your credit report, as will the bankruptcy. BUT, having a judgment that's been discharged by the court will haunt you a whole lot less than an active judgment.

Now, depending on how I read your question, I'm wondering whether you A)already have judgments entered against you, or B)have debts in collections (or even in the lawsuit stage) but still haven't had judgments entered. Ultimately I don't think it matters all that much if you're starting over with a bankruptcy nuke. The bankruptcy is the big starting over point, and discharged debts are discharged debts.

11181986

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Re: Judgements
« Reply #3 on: March 06, 2018 11:35:50 PM »
you'd really like to avoid the judgments if you own real property. If you do not own real property it is not too big of a deal. While pre-petition debts are discharged in BK, judicial judgment liens are not discharged unless a specific motion is made.

NashRicky

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Re: Judgements
« Reply #4 on: March 07, 2018 02:32:37 PM »
Thanks for the responses.

As far as I know, I do not have any judgments against me unless there was one recently. I do have a BK lawyer and we are filing CH7 in the next few weeks.  I had a little too much income in one month that was 6 months ago so I have to wait until April to file. I have been successful in delaying any lawsuits with motions filed for improper process of service and improper venue.

Now I have court dates coming up. One of these lawsuits I filed a motion to dismiss over improper venue and then I find out that I was supposed to be present at the hearing for improper venue. That was my mistake for not realizing I needed to be present for the hearing on the motion. I talked to the clerk and she said a notice on the ruling will be mailed. I have attached a screenshot of the notes on the case that I found online. Maybe someone can decipher the notes.

I have debts in collection and there have been no judgments yet unless there was one in the aforementioned suit.

Maryland Homestead Exemption protect up to 24K of equity under CH 7 and that amount easily covers me.

My credit is already destroyed and the only way to get it back is to file CH7 and begin to rebuild. A friend mentioned that I should avoid any judgments against me because they could somehow have a much greater negative effect on my credit down the road. Has anyone found this to be true?


CleaningUp

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Re: Judgements
« Reply #5 on: March 08, 2018 01:58:36 AM »
I would be filing a motion for a continuance with the court based on the pendancy of bankruptcy.

The court pretty much rubber stamps such requests as they don't like to waste time on cases that are just going to be taken from them in the middle of the process.

Just make sure that you file for BK before the rescheduled hearing....

11181986

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Re: Judgements
« Reply #6 on: March 09, 2018 02:53:58 PM »
Okay, so you said you have a homestead exemption, implying that you own real property.  Therefore it is crucial that you do not get judgments against you prior to filing BK. 

Any liens created by the judgments will survive the discharge - even though you will not be personally liable for the debt, if you sold or refinanced your property without extinguishing the liens under the BK code, the proceeds of any sale or refi would be used to satisfy the judgment liens.

 

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