I have a friend who is having financial problems. They started a long time ago and have escalated since a recent divorce. He really needs help and I cannot advise him. He has some old credit card debt that he is trying to pay off and one company has a judgment against him. He only owns a small home, an old van, and very little else.
Someone has told hm to file bankruptcy, but his largest debt ($8 or $9,000.00) is the one that has a judgment. I do not believe that he can remove this with a bankruptcy. Can someone please tell me if a bankruptcy would affect a judgment?
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No, filing for bankruptcy will not affect the judgment - in other words, the bankruptcy will not get rid of the judgment; he would still have to pay it. If his largest debt is only $8-9,000 instead of filing for bankruptcy, I would recommend your friend go through the Dave Ramsey course (www.daveramsey.com) on how to get out of debt and stay that way. Federal bankruptcy law changed a 2-3 years back (and not for the better IMO); individuals now have to go through debt counseling and other "hoops" when they file, and most times the Court will force an individual into a payment plan (as opposed to "clearing the slate") to pay off the debt.
if you file bankruptcy here in NY and you have a good lawyer he can remove the judgment from your files after you file bankruptcy.bankruptcy does remove the judgment if you file it when you do the filing. At least here in NY. We just filed because of so many medical bills and all of our judgments were released--then for a fee the lawyer went to court and had them removed from our records.We have been able to start over and are trying to be careful about our bills ie if we can get out of it we don't go to the drs, etc.
From what I understand the judgement should be included in the original filing of the bankruptcy along with any other non-judgement debts your friend wants released and chances are that the judge will include that judgement, along with the other debts incuded in the filing, to be discharged as long as the debts are not frivolous or fraud.
Your friend really needs to hire a bankruptcy lawer and ask lots of questions!
I agree with Larswife. We were told that once a judgement has been made it has to be paid. IMO also changing the laws is not for the better.
Not all judgements can be removed by bankruptcy; but, the ones that are caused by credit card debt can be removed by bankruptcy in almost every state. I had two credit card based judgements removed by my bankruptcy.
The types of judgements that cannot be removed by bankruptcy are ones that occur due to alimony and child support and ones that result from a negligent act (example - a drunk driver without insurance who injures some one or causes property damage will have judgements against them and these cannot be gotten rid of with bankruptcy)
Just make sure the debt and judgement are specifically listed in the case file when you file.
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www.bankruptcyexpertsgympie.com.au
Hi. I read your problem and I suggest that you will need an bankruptcy expert to know more that detailes about your problem.
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