Legal Question in Bankruptcy in Texas
Bankruptcy and Judgements
I recently won a judgement in a civil lawsuit. Now the other party is filing bankruptcy. I understand that a civit judgement can 'stop' a judgement, but does it dismiss the debt as well? Is there anyway to collect the money owed to me?
2 Answers from Attorneys
Re: Bankruptcy and Judgements
Unfortunately, unless the judgment is based on fraud the judgment and the associated debt is "discharged" (the fancy bankruptcy term for eliminated) by the bankruptcy filing. If the debtor filed under Chapter 13 instead of Chapter 7 there might be funds available to pay you and the other creditors some small percentage of the total debt. Please feel free to contact me personally to discuss your situation. ph. (972) 231-5500 or (800) 303-0720
Re: Bankruptcy and Judgements
Unless the judgment is for fraud or intentional conduct, then the judgment will probably be discharged in bankruptcy. If the judgment is for fraud or intentional conduct, you will need to file a lawsuit in the bankruptcy case (an adversary proceeding) to determine the dischargeability of the debt. If the bankruptcy case is a Chapter 13 bankruptcy, even judgments for fraud and most intentional conduct are dischargeable as long as the debtor completes his Chapter 13 payment plan.
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