Legal Question in Bankruptcy in California

Bankruptcy and filing an answer

Dear Guru,

I was served with a complaint for restitution ($6,100) two weeks ago. Now I am filing chapter 7, which won't be filed for 4 weeks (for financial reasons). My attorney advises me to ignore the complaint, even to the point of plaintiff obtaining a judgement, as the bankruptcy will discharge the judgement. However, I personally would like to avoid a judgement being entered against me, even if it would be discharged and my lawyer says it's ''No big deal.'' Would there be any advantage (financially or personally) in filing an answer to prevent judgement? If yes, can I simply file a General Denial form?


Asked on 8/25/02, 10:12 pm

1 Answer from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Bankruptcy and filing an answer

In my opinion, if at all possible, you should either file the bankruptcy immediately or otherwise avoid a judgment. Why? Because under California law, a judgment can be renewed every 10 years. Most creditors do not renew a judgment, but most experienced bankruptcy practitioners have seen this come up from time to time. If you can avoid a situation where you have to declare bankruptcy every 10 years (the law allows you to file at least every 6 years + 1 day), you should.

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Answered on 8/26/02, 10:51 am


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