BK 13 And Judgment

[unclerico]

Now that we have filed and our plan will be finalized Friday and submitted to the court I have one remaining question.

My wife has a judgment that she has been paying on over the past year and is about 1/2 way through. Is it possible to have it vacated and the funds returned to the BK estate or will they collect a portion of the unsecured through out the plan?

[lrprn]

The answer depends on what the judgment is for. The following debts and any judgments related to them typically cannot be discharged:

- Debts owed to a spouse, former spouse or child for alimony or support in connection with a separation agreement, divorce decree or property settlement agreement.

- Debts for "willful and malicious" injury to another or property of another. Willful means "deliberate or intentional."

- Debts for a fine, penalty or forfeiture. For example, restitution orders imposed in criminal cases are non-dischargeable.

- Debts for judgment against the debtor for death or personal injury caused by the debtor's operation of a motor vehicle while intoxicated.

If your wife's judgment is not due to these situations but instead is a credit card or other unsecured creditor who took her to court and won, then that kind of judgment can be discharged.

What did your lawyer tell you two about her judgment? Is it listed on your filing forms?

[unclerico]

The judgment was for a credit card. 1/2 of it is paid as of the time of filing a week ago. We are meeting with the attorney tomorrow to go over all of the stuff that is to be submitted to the BK court. I had read that a judgment can be vacated when a 13 is filed but was not sure if it is actually true. If so what happens to all of the funds that they received?

[rrockinggramma]

you are in Michigan, right? Basically once you file, you need to take your filed papers and the case number to the court and make sure they notate the judgment as "included in bankruptcy" Once discharged, make the same trip and show them the discharge papers. Your file will be notated as "discharged in bk" and that will end the judgment collection. When I did that, it disappeared from my credit report as well.

[unclerico]

you are in Michigan, right? Basically once you file, you need to take your filed papers and the case number to the court and make sure they notate the judgment as "included in bankruptcy" Once discharged, make the same trip and show them the discharge papers. Your file will be notated as "discharged in bk" and that will end the judgment collection. When I did that, it disappeared from my credit report as well.

Thank you! Will the judgment be treated as non priority unsecured debt during the BK?

[lrprn]

Thank you! Will the judgment be treated as non priority unsecured debt during the BK?

Since the judgment is for a credit card, then yes - it will be treated as unsecured debt.

The cc company can file a claim for what your wife owed still owed them on filing day, but they will get the same % payback as the rest of your unsecured creditors will get. The remainder of the judgment will be wiped out when your 13 is successfully discharged.

[caj0524]

[rrockinggramma]

a creditor has to have a good reason to object to a discharge and or a claim. Not getting paid a full amount when they are an unsecured creditor is NOT a good enough reason. Any trustee would throw out their objection. (unless the creditor can prove fraud etc)