Question about accounts being reported correctly

[joshandcorrie]

I filed in October of 2005 and was discharged in March 2006. Right when I filed in 2005 I was served with some court papers from a collection agency for a an outstanding loan. I included this in the BK and it was discharged.

I recently went to finance a car through a credit union and they asked me about an outstanding judgement against me. After some investigation I found out that it was this collection agency. My question is how should the collection agency be reporting the discharged debt? Does a BK remove a judgement?

Thanks for your help!

[lrprn]

Does a BK remove a judgement?

It depends on the type of judgment. The court decides if a judgment is dischargeable in bk by:
- A judgment lien that attaches to assets is only avoidable by the debtor if it impairs an exemption.
- If the complaint alleged fraud or other grounds that would make a debt non dischargeable in bankruptcy, entry of a judgment against you may prevent you from later contesting the facts (i.e. you may be unable to get a bankruptcy court to hear your side of the fraud charge in a non dischargeability action).
- In the case of debts that are unliquidated (uncertain in amount), a judgment will liquidate the debt.

See http://www.moranlaw.net/lawsuits.htm for more information about lawsuits in bankruptcy.

Have you checked your credit report to see what's there for yourself? You can get a free credit report once a year from https://www.annualcreditreport.com/cra/index.jsp . This site is safe, but there are other credit report sites out there that are fraudulent, so be careful.

If you find this debt is not reporting correctly, you can dispute it. There are excellent stickies and posts here that explain how to go about doing that.

[CindyLou]

If a judgement is discharged in BK, which i'm sure this one was, then you will need to go to the courthouse with your BK papers and file a motion to vacate the judgement. That is seperate from the BK.