Legal Question in Bankruptcy in Pennsylvania

Judgements before bankruptcy

I have not started my bankruptcy proceedings because I was told to sell my home first, since I don't reside there. I have now received a letter from a lawyer (due to an unpaid credit card bill) of intention to sue. If I get a judgement against me will I be able to get it off my record through the bankruptcy filing after my home is sold?


Asked on 1/13/05, 4:44 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: Judgements before bankruptcy

If you have been sued, but a judgment has not been obtained yet, you may defend the suit and avoid a judgment. If a judgment has been obtained in the county where the property is located and the property is in your name, only, the judgment will become a lien on the property. Consequently, it will have to be paid at any closing.

One question I have is what is the value of the property? You have more than a $17,000.00 exemption in the property while you own it. Conversely, upon sale, you will only have half of that exemption in the proceeds.

I suggest you speak to experienced bankruptcy counsel as soon as possible to protect your rights and possibly avoid what is an unsecured debt becoming a secured debt. Feel free to call or E-mail me for a free initial consultation.

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Answered on 1/13/05, 5:03 pm


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