Legal Question in Bankruptcy in California

BK Discharge of all debts and judgements

Hello,

I went through a Ch 13 BK which was discharged 3 years ago. I have applied for a couple of credit cards, a refinance home loan successfully since then.

We are now trying to get a home equity loan, and are being told that a judgement shows up on our credit report. This is the first we've heard of this since the BK. The loan processor apparently called the attorney who filed the judgement and was told that even though the judgement was listed on the BK discharge as being paid, it was not.

This sounds incredible that someone can say that the US BK Court is mistaken and they were never paid! Isn't there some protection for us since anyone could come back 3, 5, 6 years later and claim the same thing? Once the Court files the discharge, don't they have to speak up within a reasonable amount of time if they truly didn't receive their payment? What can we do at this point? Thanks so much for your help!

mw

San Diego, CA


Asked on 12/21/05, 1:22 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: BK Discharge of all debts and judgements

If the debt was listed in your Chapter 13 and discharged, then your credit report should be changed to reflect that. Unlike credit card companies, attorneys who collect judgments do not regularly report to credit bureaus. It might be possible that the attorney recorded a judgment lien that still shows up in the County Recorder's office as not having been released and maybe you just need the attorney to prepare a release of the lien.

One thing you can do right away is get copies of your credit reports and dispute this entry in writing. Beyond that, I would need to know more facts about the case to advise you on what action you might be able to take against the attorney and/or judgment creditor.

My office is in El Cajon, so call me for a free consultation.

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Answered on 12/21/05, 1:59 pm
Judith Deming Deming & Associates

Re: BK Discharge of all debts and judgements

A chapter 13 does not necessarily "discharge" a debt, as would be the case in a chapter 7. In a chapter 13, the plan may not provide for paying a judgment in full. Further, even a discharged judgment can show up on a credit report, and all that would need be shown is a copy of the discharge. If you had an attorney file your chapter 13, go back to him or her and find out if this particuar judgment was paid in full and/or discharged; the chapter 13 plan may not have provided for its payment.

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Answered on 12/21/05, 2:41 pm


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