Judgements pre-BK questions - secured?

[FishersMike]

Hello,

I have a question regarding judgments that I have on me currently. I have never owned a home so I do not believe they are considered secured (assuming I read some other posts correctly)... but would like to make sure how they work.

1) Judgments that are on my credit report, do these need to be listed as creditors on my petition? I did not see any of them listed.

2) Does the amount of these unsatisfied judgments get added as unsecured debt to my Chapter 13?

3) What happens as far as my credit report, will it re-age them?

Any help would be appreciated. Thanks!

[kornellred]

If the judgment is related to an unsecured debt, then it IS an unsecured debt - the judgment is not the debt itself. If you own property that has significant value, the judgment owner has a lien on it, and you cannot legally get rid of it without surrendering the proceeds in the amount of the judgment. But that does not mean the judgment makes an unsecured debt into a secured debt. A judgment just empowers a creditor to collect what is owed through legally acceptable channels. In no way does it guarantee the creditor will be paid.
The automatic stay stops judgment owners in their tracks. They can do nothing to collect the debt. When the bankruptcy is finished, the debt the judgment was based upon is discharged, and the judgment has no basis. Then, you file a motion with the civil court that made the judgment to set the judgment aside. The court has no choice.
Your attorney will inform you of what needs to be listed.

[tobee43]

If the judgment is related to an unsecured debt, then it IS an unsecured debt - the judgment is not the debt itself. If you own property that has significant value, the judgment owner has a lien on it, and you cannot legally get rid of it without surrendering the proceeds in the amount of the judgment. But that does not mean the judgment makes an unsecured debt into a secured debt. A judgment just empowers a creditor to collect what is owed through legally acceptable channels. In no way does it guarantee the creditor will be paid.
The automatic stay stops judgment owners in their tracks. They can do nothing to collect the debt. When the bankruptcy is finished, the debt the judgment was based upon is discharged, and the judgment has no basis. Then, you file a motion with the civil court that made the judgment to set the judgment aside. The court has no choice.
Your attorney will inform you of what needs to be listed.

excellent post...a motion to vacate can be done after the discharge and hopefully clear all the lingering judgments for you.

[FishersMike]

Thanks for the responses. After going to the signing appointment I found out that the judgment creditors should be listed if I want to include as unsecured creditor so they may get paid something. He is going to add them.