Legal Question in Civil Litigation in California

Re: Judgement/Bankruptcy

A judgment is good for 10 years, and can be renewed for another 10 before it expires.

You would record either the judgment or the abstract of judgment with the county recorder to put the world on notice of the judgment. It also serves as a lien on any real property the judgment debtor might own. It also makes obtaining loans more expensive, so it might encourage the debtor to pay you.

Finally, bankruptcies can erase most judgments for money -- except if they were for an intentional injury to another entity (which includes a person), is for court ordered child support, arises from a conviction for driving under the influence, and a few others.

Re: Judgement/Bankruptcy

If your judgment debtor goes bankrupt, or you even think he might already have filed for bankruptcy, you must STOP all collection activity AT ONCE. That means no mail and no calls. Be very careful what you do, if you violate the "automatic stay" you could be sued.

Normally you would receive a notice of bankruptcy filing from the court, but maybe not. Look on pacer.uscourts.gov to see if there is a bankruptcy filing, and file a proof of claim with the clerk of the bankruptcy court before the claim deadline.

The new bankruptcy laws make it difficult for the debtor to completely avoid a judgment; in all likelihood the debtor will have to file under Chapter 13 and you might possibly get paid something. If you recorded an Abstract of Judgment with the county recorder before the bankruptcy filing, and the debtor has equity in real estate, your recordation of the Abstract created a lien that will in most cases survive the bankruptcy. If you are SURE that the judgment debtor hasn't filed for bankruptcy yet, and you are able to obtain and record an Abstract, by all means do so.

When and if the bankruptcy proceeding is concluded, the debtor may be protected from collection activity by a "discharge injunction." Again, be sure and DO NOT attempt to collect a debt that was discharged in a bankruptcy proceeding.

Some types of debts are non-dischargeable in bankruptcy, for example, most student loans; and damage awards based on drunk driving accidents.

Consult a bankruptcy lawyer in person for more info.