Legal Question in Civil Litigation in New York

Re: Open Judgement

While it's not clear what you mean by an "open" judgment, depending upon the nature of the judgment and the reason for the judgment, it is possible that the debt may be discharged or reduced in bankruptcy. However, some debts and judgments are not discharged in bankruptcy.

You should consult a local bankruptcy attorney for specific advice on your case.

Re: Open Judgement

A judgment in NY is good for 10 years and can be renewed for another 10 years. The judgment can be enforced during this period. Interest accrues on a judgment at 9% per year. So for every $1,000 face amount of judgment every year another $900 gets added in. A creditor with a judgment can garnish the judgment debtor's (person owing the judgment's) wages, levy on his/her bank account(s), put a lien on his/her house or any real estate he/she owns, and seek to seize and sell his/her car.

A judgment also appears on the credit report of the judgment debtor (person owing the judgment) for 7 years and will have a negative effect on his/her credit standing.

Obtaining a discharge in a personal bankruptcy case will wipe out a judgment debtor's personal liability for a judgment (assuming the judgment is not for certain categories of debt that are automatically excepted from discharge). In addition, if a judgment has been recorded with the County Clerk in a county where the judgment debtor owns real estate, the lien will not get automatically wiped out in bankruptcy. However, depending on the circumstances the judgment debtor may be able to avoid the lien in the bankruptcy with the assistance of a competent bankruptcy attorney.

The foregoing is intended as information of interest to readers of this website and is not legal advice for your specific situation. You should consult with an attorney regarding your specific situation. Facts and circumstances not disclosed in your brief posting may materially affect your rights.

Please feel free to visit the Frequently Asked Questions (FAQs) and the Blog postings on our website at www.starrandstarr.com for further information about collections, debtor-creditor matters and bankruptcy matters.

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