Legal Question in Bankruptcy in Maryland

Re: judgment discharge under bankruptcy law

If a debtor files under either Ch. 7 or 13 and is discharged, you will not be able to collect the judgment, ever, from the Debtor. If there are non-exempt assets administered by a Ch. 7 trustee, or plan payments in a 13, you may get paid in part through the bankruptcy process. If the debt is of certain types, such as fraud, intentional torts, or drunk driving personal injuries, the debt may not be discharged and you may be able to pursue it after the bankruptcy is over, but you may have to file and prevail on a dischargeability complaint in the bankruptcy case to be able to proceed in that manner, and you should note that the deadlines are very short. Finally, if the bankruptcy is dismissed or a discharge denied, you will be free again to try to collect.

A judgment lien survives bankruptcy unless it is avoided, so the lien can be enforced afterwards, provided you only seek recourse to the encumbered property, not to the debtor personally. A judgment lien can be avoided in bankruptcy for a number of reasons, including if it impairs an exemption to which the debtor is entitled, or if it is a preferential transfer (made within 90 days of the filing date, provided certain other conditions are met).

Please see a lawyer to discuss your specific fact situation.