Judgments & Filing for Chapter 7

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I have 2 judgments already issued and a 3rd in the process. One is for a car loan which car was repossessed and the other is for a credit card. The pending judgment is for medical bills. I reside in NY and I am wondering if bankruptcy will clear these judgments or not? I am aware if I file fast enough I can stop the 3rd but since I'm using legal aid it won't be fast enough so this 3rd judgment might be ordered as well.

Can and or will all these judgments be erased with the bankruptcy or not? And or is there a way to have them cleared with bankruptcy?

My income is my disability and with 2 dependents I receive help from social services to live. Any advice, appreciated.




A bankruptcy will stop any and all collection activities, including judgements.

Sub: #1 posted on Tue, 09/16/2008 - 08:33

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: 58.41)

In general, Desperately is right.

Under extreme circumstances, those creditor might be able to motion the bankruptcy courts to modify the stay and allow enforcement of those judgments; or they can file an adversary proceeding in the BK court. But that is rare - mostly in cases where they can prove fraud or deception on your part. That doesn't sound like the case here.

However, you may not need to file BK. You may be what's called "judgment proof". SSI and disability income cannot be garnished, so even with their judgments, they can't touch you. Unless you have lots of property or checking account, which they may be able to attach.

Sub: #2 posted on Tue, 09/16/2008 - 16:38

DebtCruncher DebtCruncher
Moderators
(Posts: 2296 | Credits: 269.79)

DC - I am surprised that Legal Aide didn't tell the OP that!

If the OP is "judgment proof" what can they do to stop the collection/lawsuits?

Sub: #3 posted on Wed, 09/17/2008 - 06:57

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: 58.41)

Well, judgment proof just means there is no resources/assets available to enforce those judgments (ie garnishment/ attachment/etc.)

The collection "attempts" will continue, and there's no way to stop creditor from filing lawsuits. Just that with a judgment-proof debtor, they are wasting their time and money by filing those suits.

So, to truly stop the phone calls and any collection efforts, BK would be the best resort.

Sub: #4 posted on Wed, 09/17/2008 - 18:50

DebtCruncher DebtCruncher
Moderators
(Posts: 2296 | Credits: 269.79)

Thanks for the info!

Sub: #5 posted on Thu, 09/18/2008 - 06:27

desperatelyseekingsanity desperatelyseekingsanity

(Posts: 1129 | Credits: 58.41)

Correct, I am in the same boat. I am judgment proof and I collect SSDI. I went to the payment hearing a few weeks ago for LVNV funding after they got a judgment against me. The lawyer knew he couldn't touch my money but still asked how much I could pay, I told him, nothing. So now it is continued to next year in February. I am going to tell them the same thing again. Hopefully by that time I will have my Bankruptcy filed.

I had a free attorney but they backed out and I can't contact them anymore so I don't know what happened to them. Now I have to find another. grrrrrrr.

Sub: #6 posted on Sun, 09/21/2008 - 07:16

Unregistered


I just read on a newer thread that bankrupcty will not discharge an unsecured debt if a judgement has already been filed, is that true? I was sued for credit card debt and a judgement was issued, can I get rid of this if I file for chapter 7

Sub: #7 posted on Fri, 11/14/2008 - 11:54

Unregistered


To the op, how long did the legal aid office tell you the process would take?

Sub: #8 posted on Tue, 11/18/2008 - 06:01

Unregistered


No, bankruptcies WILL discharge any judgements against you.

Sub: #9 posted on Tue, 11/18/2008 - 06:26

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17205 | Credits: 4745.71)

I have a new born baby who receives SSDI, along with me, is that income included in my total income when doing the means test? SSDI is our only source of income. Our means income is 33,000/yr which is under the standard by 30,000 dollars. My concern is when figuring all total cost we are within 200.00 dollars of using all income. Could that be considered as misc expense or doe's that require filing chappter 13? Our total debt. is about 80,000 dollars and it is all credit cards, unsecured and personal loans, unsecured. Is chapter 7 the way to go?

Sub: #10 posted on Sat, 12/06/2008 - 13:23

Unregistered


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