How do judgements work in a bankruptcy?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How do judgements work in a bankruptcy?
I have a recorded judgement against me recorded from a credit card for $10,000+ from 4 years ago. If I file Chapter 7 what happens to the judgement? Will I ever have to pay the money if I sell my home in the future if it is discharged? If the judgement is only good for 5 years, what are the chances they will renew it? The credit card is in my name only but the house is in both myself and my wife’s name.
Asked on June 10, 2012 under Bankruptcy Law, Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under federal bankruptcy law, if the $10,000 credit card judgment against you that presumably is recorded on your home is not for an intentional tort is subject to a bankruptcy filing, most likely your obligation as to it will be discharged in a Chapter 7 filing assuming your liabilities greatly exceed your assets.
Meaning, the judgment will be eliminated even though if recorded it may have some sort of a priority under the bankruptcy laws for payment. In all likelihood, assuming that this $10,000 credit card debt is not completely eliminated in a bankruptcy, chances are that you will only be obligated to pay a small percentage of what is owed.
I suggest that you consult further with a bankruptcy attorney as to the issue that you are writing about.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.