Legal Question in Bankruptcy in California

Re: How are judgments handled after filing bankruptcy?

If you are asking whether the debt underlying the judgment will be discharged, that depends on whether you successfully complete whatever bankruptcy case you have and it presumes the creditor does not object to the discharge of that debt. Otherwise, yes, you would be discharged from a personal loan debt. If the judgment creditor obtained a lien, however, that is a different story.

Re: How are judgments handled after filing bankruptcy?

Good news as to the debt and judgment. Assuming you qualify to file a Chapter 7 straight bankruptcy (i.e., you do not have enough "disposable income" after living expenses to pay any significant portion of your unsecured debts) the debt will be wiped out. The fact that they have a judgment will not save it from being wiped out. The only exception to that is if the debt was a result of some sort of fraud and they got a judgment for fraud the debt will not be wiped out. Even if there was no fraud judgment, they can file in the bankruptcy to have it determined if it was incurred by fraud and therefore not dischargeable. Assuming no fraud the debt will be dischargeable. If they are attempting to seize wages, bank accounts or other assets that will stop as soon as your case is filed. If they have recorded the judgment AND you own a home, you may need to have a motion filed in the bankruptcy to remove it as a lien on your home. You can find out more information from my web site at ca-bankruptcy-attorneys.com. In addition you can schedule a free attorney phone consultation with me by calling my staff at 1.800.675.1005. I handle cases statewide in California and my fees are very reasonable.