Legal Question in Bankruptcy in California

Re: What will happen if I can't pay?

Unless the award is for punitive damages (this should not be the case) the judgement can be discharged in Chapter 7 bankruptcy. Call me to discuss fees.

Re: What will happen if I can't pay?

What you read is incorrect. Judgments are one of the main reasons that people file for bankruptcy protection.

You might wish to wait to file BK until the amount claimed is certain, although it is not a necessity.

Additionally, you should discuss with your civil attorney whether the summary judgment decision is appealable and the likelihood of success on appeal.

Please let me know directly whether I might be of assistance.

Re: What will happen if I can't pay?

You can definitely do BK. Employment cases are becoming very tough these days.Did they already do atty fee motion?

Re: What will happen if I can't pay?

If you have no job or assets, then there is pretty much nothing the creditor can do until you get a job or assets, at which time the judgment creditor can empty out your bank accounts, attach your wages and potentially take away any other property you own. You are entitled to certain exemptions under California law, but claiming these exemptions will not get rid of the judgment against you. Unless you plan to be next to pennyless the rest of your life, you can bet that the creditor will eventually collect against you. The judgment accrues 10% interest each year, and interest can be compounded into the principal each 5 years. The creditor can pursue you the rest of your life, and if you die with any assets, the creditor can keep going after your assets even after your death. A chapter 7 bankruptcy, however, would discharge (wipe out) all your debts, including any judgments entered against you (with certain exceptions like taxes, student loans, and child support). In order to qualify for a chapter 7 bankruptcy, you would have to show that your income the last 6 months was below average (which would be pretty easy if you have been unemployed). If you qualify, and you have no assets (of substantial value), you can file and wipe everything out. However, it is more costly to file bankruptcy now than it was a few years ago, before the law changed. You should expect to pay somewhere between $1500 and $3000 to an attorney to do a bankruptcy for you. On the other hand, should you not plan to work for the rest of your life and live on disability or social security and never own anything of value, and do not care about ever obtaining credit again, you can probably safely do nothing, except that you should make sure you either do not have a bank account or keep a very small minimal balance in any account you may have.