why is everyone so concerned about getting sued before filing BK?

[drowningfast]

Union Bank is probably going to file a default judgement they won in a stipulation agreement sometime soon.

Since this is dischargeable in a chapter 7 what's the concern?

[WhatMoney]

Union Bank is probably going to file a default judgement they won in a stipulation agreement sometime soon.

Since this is dischargeable in a chapter 7 what's the concern?

The debt is dischargeable in BK, but if you get a judgment before you file BK, you must go through an extra court motion to vacate the judgment after discharge. A pre-filing judgment survives the BK, until you get it vacated in the circuit court where you were sued.

[keptdigging]

Until you file BK, a creditor with a judgment can garnish your wages, seize funds in a bank account, etc. If you're in this situation, you might just need every dime... say to eat or pay an attorney.

[keptdigging]

Also I've read that removing judicial liens on real estate is not always simple. Anyone with expertise want to chime in?

[drowningfast]

so basically, it's a pain in the rear to get it dis-charged? and costs money?


but it is dischargeable? I'm not too worried on the lien on the house it looks like we're letting that go, but if we did keep it how do we get rid of that as well?

[backtoschool]

so basically, it's a pain in the rear to get it dis-charged? and costs money?


but it is dischargeable? I'm not too worried on the lien on the house it looks like we're letting that go, but if we did keep it how do we get rid of that as well?

It costs several hundred dollars to vacate a judgment. You have to go to the courthouse where the judgment was awarded and do the paperwork to vacate it. If you have moved, or if the creditor got the judgment in a location that is not near you, it is a pain to vacate them. Many people just dispute them on their credit reports and never officially vacate them since they are not collectible after discharge anyway.

[music12]

in states a judgment results in an automatic lien on certain properties, which you would have to file a motion to avoid in bk if you have assets you are not giving up, which seems not to apply to you.

as backtoschool says, getting a judgment vacated might be a pain (though i doubt it costs as much as he says it does), but is not necessary. i have a judgment against me that never made it even to my credit reports. i did nothing about vacating it and i don't care because the creditor can't do anything with it.

[backtoschool]

in states a judgment results in an automatic lien on certain properties, which you would have to file a motion to avoid in bk if you have assets you are not giving up, which seems not to apply to you.

as backtoschool says, getting a judgment vacated might be a pain (though i doubt it costs as much as he says it does), but is not necessary. i have a judgment against me that never made it even to my credit reports. i did nothing about vacating it and i don't care because the creditor can't do anything with it.

I am a "she" not a "he".

I know how much it costs because I had to do it for my judgment.

[music12]

sorry! i am a "she" too, i should have been more careful

wow, why is it several hundred dollars? is it for paying a lawyer or just filing fees??

[backtoschool]

sorry! i am a "she" too, i should have been more careful

wow, why is it several hundred dollars? is it for paying a lawyer or just filing fees??

Filing fees with the court. It's outrageous, I agree.

[music12]

wow. the bankrupt have to pay hundreds to get their judgments vacated when the bk statute says that they are automatically vacated. unbelievable. like they don't tax us enough as it is.

[drowningfast]

ok, so I hear you "ladies and gentlemen"!

sounds like this isn't the end of the world. should I try to stall union bank? if I make a payment towards the settlement it would probably put them off until I could file. I haven't even taken a means test yet. I called a BK attorney and she pre qualified me after a 30min phone call.

[Ann]

Until you file BK, a creditor with a judgment can garnish your wages, seize funds in a bank account, etc. If you're in this situation, you might just need every dime... say to eat or pay an attorney.

keptdigging, this is exactly why I'm afraid of being sued before I can file!!! Eating is a major priority for me and my family!!! Well said!!!

[tay666]

Also I've read that removing judicial liens on real estate is not always simple. Anyone with expertise want to chime in?

I don't have any expertise.
Just know what the lawyer told me when we discussed it.
If any of the creditors who have default judgements did happen to get a lien on my property before I file.
I guess the only way to have those leins removed is during the BK procedings.
Which will cost me extra if it does come up.

[JackBondLove]

I know in my case, I had some purchases to make before BK (all exempt items that would be considered as needed for living), so I was concerned about getting a judgment in which a creditor could seize my bank account.