Judgements

[Overmylimit]

I am waiting to file bk because I had a lot of activity with my credit lines just a few months ago, so I am trying to put some time between then and the bk. If anyone should get a judgement against me in the meantime can I discharge that when we do the bankruptcy??

[AngelinaCatHub]

I would do much to put off a Judgment. You will have more trouble and expense in you bk with a Judgment. Hold them off until the last minute then file electronically PACER your lawyer's account. That will stop the Judgment in the automatic stay. 'Hub

[justbroke]

As 'Hub wrote, don't let the judgment be granted. It usually takes some time before lapse in payments and the creditor goes for a judgment. I would suspect at least 6 months (to allow for charge off and then lawsuit and then judgment).

At least, respond any summons you receive for a pending judgment (lis pendens) and then immediately file for Bankruptcy to Stay the lawsuit.

In most Judgments, the creditor looks to attach property/assets. Even if you get a judgment prior to filing, you can avoid the lien that may have attached to property.

As 'Hub wrote, it's best to just avoid the judgment altogether, as your lawyer will most likely charge you more, in a Bankruptcy, to file Motions to Avoid Lien and all the work that comes with that... including if the Creditor challenges and you end up in an Adversary Proceeding... costing $$$.

[GoingDown]

Yes, avoid the judgment, file before they get a judgment against you IF you have assets you want to protect such as a house they could put a lien against.

If you're judgment proof-- no significant assets to protect from the judgment-- then don't be too worried about it. Judgments get discharged in Chapter 7 Bankruptcy just like any other debt. It's only when they attach to your assets which would otherwise be exempt in bankruptcy that they become a problem.

I have a small judgment against me but I have no assets. I still plan on filing Chapter 7 pro se because I have nothing they can put a lien on. And I'm puting it off for years to put a lot of time between my filing and my credit card charges.

[woeisme]

My husband had three judgements with wage garnishments when we filed CH 13. Didn't cost us any extra to add these debts to the plan or do the paperwork, but maybe that's just because we filed CH 13? Only 1 of the 3 places that had judgements against him did the paperwork to be paid through our plan, which really surprised me since our base plan was proposed at 65% (we're going to pay 75% tho since not everyone filed). You'd think if they went to the trouble to get a judgement and wage garnishment, they'd file the paperwork to get paid back by the trustee, but there's no understanding creditors I guess.

[GoingDown]

My husband had three judgements with wage garnishments when we filed CH 13. Didn't cost us any extra to add these debts to the plan or do the paperwork, but maybe that's just because we filed CH 13? Only 1 of the 3 places that had judgements against him did the paperwork to be paid through our plan, which really surprised me since our base plan was proposed at 65% (we're going to pay 75% tho since not everyone filed). You'd think if they went to the trouble to get a judgement and wage garnishment, they'd file the paperwork to get paid back by the trustee, but there's no understanding creditors I guess.

Most creditors throw up their hands and give up when a debtor files BK. They figure they've already been out enough money and so they cut their losses and move on to other debtors.

I've seen this on debt collector forums.

[justbroke]

Most creditors throw up their hands and give up when a debtor files BK. They figure they've already been out enough money and so they cut their losses and move on to other debtors.

I'm finding that most don't want the fight or expense. Most unsecured creditors can't recoup the legal expenses of filing. If it's a sizable amount, they are more likely to "invest" in filing a Claim. If you object to the Claim, then they have to decide if it's worth fighting (they may not be able to recover legal fees).

For example, there are a few companies that BUY Bankruptcy debt for very little on the dollar... hoping to recover the entire amount -- or close to it. Some of them have stipulations in their contracts with the original Creditor, that if you object to it, then the original creditor has to buy it back. They have, really, nothing to lose! Even if their claim is denied in full, and they recover their costs... they are that much better. (Notorious companies for Claim purchasing are Round-Up Funding and eCast Settlement. My judge spanked Round-Up real good late last year on insufficient Claims.)

[treehugger1]

Unless you are savvy to your state laws, then it can "cost" you to get a judgment voided. My take on my state statutes and rules of procedure is that it is not that difficult or costly to get the judgment vacated after a discharge if you file the paperwork yourself. But, you have to be willng to take on the research to figure out how it is done. Do your own due diligenece for your state.

[Overmylimit]

Thanks guys! you are a big help, I am just trying to sort it all out because when I file I want this to be the only time I ever have to do it!

[ssdsco]

Watch out for liens. From what I understand they cost extra to remove in BK and can only be removed in BK if they impair a BK exemption that you're using.

If you have a lien on your house that has no equity, you've decided to keep it when you file, because there's no BK exemption being impaired then the lien can't be removed. Even though the debt is discharged the lien is payable when you sell the house. I wish I was wrong but I don't think I am.