Legal Question in Bankruptcy in California

I'm self employed and am currently going thru a loan mod on my home--my 2nd mortgage did a charge off as they wouldn't work with the current attorney doing my loan mod. I've a pending lawsuit, which, if I loose, will be a judgement against me. Can a judgement be included in BK, will it be wiped out or will they be able to - pursue me into BK, court?

Because my 2nd did a charge off is that considered an unsecured debt? And can I just do a BK of all my unsecured debts and still keep my house and car?

Hope I'm making sense. thanks


Asked on 10/09/09, 1:26 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

A judgment generally is dischargeable in a bankruptcy unless it's for driving under the influence, intentional harm to another person, or fraud, for example. If the judgment turns into a lien on property, however, it would take your BK attorney extra work to have it removed.

All unsecured debts could be dischargeable in a Chapter 7 bankruptcy. It would take a thorough review of your financial picture to determine what happens with the 2nd mortgage, including whether there still is equity in the house. If you were to file a Chapter 13, an attorney might be able to "strip" the 2nd from the mortgage, to make your home payments easier.

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Answered on 10/09/09, 1:48 pm


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