Can Judgements be written off in BK

[NoMoreCards]

This came up in another thread, and I was hoping for a better understanding.

If a creditor (Credit Card Company) sues you for a unpaid CC, and they get a judgment against you, and then you file for BK. Would you be able to write off the judgment amount?

I understand in 13 you must pay back a %, but would the judgment be subject to the same rules as a unpaid CC, or is it counted like a child support/tax payment that can not ever be discharged?

Thanks for any clarification you can provide

[Tbornetun]

The debt would be discharged. There is a form you can file with the court to satisfy the judgment if the creditor doesn't do it for you.

[HHM]

Assuming the underlying debt is dischargeable (i.e. like credit cards), then you can ultimately vacate the judgment. The tricky part is if the creditor filed a lien. Then you have need to evaluate the effect of that lien on the encumbered property, whether the lien has any value (i.e. there is equity in the asset to cover the lien), and then make a Motion to Avoid the Lien if appropriate.

[NoMoreCards]

That is very helpful information. Thank you for your help.

The person I am thinking of, has no assets so a lien is not a possibility.
It is indeed a credit card judgment.

Thanks Again!

Karen

[knucklecurve]

Just found this thread and want to make sure I understand correctly. If I have a default judgment against me for an unpaid credit card balance, then file BK 13 and satisfy my 5 year playment plan, once discharged my judgment will be considered satisfied (and off my credit report) provided I file the proper paperwork with the court.

State: Virginia

[knucklecurve]

BigBoy2U,

I appreciate the response. FWIW I have read the stickys and for that reason I wanted clarification based on the conversation in this particular thread.

Tbornetun's post above (#2) reads "There is a form you can file with the court to satisfy the judgment if the creditor doesn't do it for you."...also, if you read the sticky titled "Creditor, Lawsuits, and Judgments" (see "Collections") it reads: "Note, once you get your discharge from BK, you need to file some paperwork with the court that entered the judgment and attach your discharge order."

So it appears you do indeed file paperwork with the court.

As for the credit report, while it is not automatically off your CR as I suggested, I have also read in this forum that there are steps you can take to get a judgment removed from your report once you are discharged (request it to be vacated, for example). So it is not quite a 7-year death sentence...that is, with a little luck and if you take the appropriate steps.