Monday, August 20, 2012

I have judgments against me - will they go away if I file bankruptcy?

If debt goes unpaid and collectors are after you for a while, often you will get judgments entered against you. These judgments allow the creditor or debt collector to garnish wages, garnish bank accounts and attach liens against your home.

Many people think that once they have a legal judgment against them that they can not file bankruptcy on that debt. This is completely untrue. You can discharge debts that have judgments attached to them.  Once the bankruptcy is filed you can stop the judgment creditor from garnishing your wages, bank accoutns or taking your assets.

Although judgment debts can be discharged in bankruptcy, debtors who are also homeowners should be careful when filing bankruptcy. Although the judgment debt will be discharged with a bankruptcy, any liens that attached to the debtor's home will stick unless they are avoided. So, homeowners with judgments should seek an experienced attorney to represent them in the bankruptcy. The bankruptcy attorney can file motions in most cases to avoid judgment liens on the home. If this is not done the judgment lien will remain stuck against the home, even years later.  It is very important to avoid these judgment liens while the bankruptcy is still open.  Our firm has experience avoiding these type of liens in both Chapter 7 and Chapter 13 bankruptcy cases. For more information about us, visit our firm.