Legal Question in Bankruptcy in Virginia

Status of Judgement when claim not filed

In a Chapter 13 when a judgement is included but the creditor does not file a claim is the judgement stil collectable outside of the Chapter 13. Specifically I am trying to refinance and payoff the Chapter. There is one judgement where the ceditor did not file a claim. Will I have to payoff the judgement in the refinance. The judgement is still on my credit report and the lender is questioning it.

Thanks


Asked on 1/14/03, 5:17 pm

2 Answers from Attorneys
Daniel Press Chung & Press, P.C.

Re: Status of Judgement when claim not filed

A bankruptcy filing and/or discharge does not affect an existing judgment lien unless the Court affirmatively avoids the lien. It can't attach to after-acquired property, and can't be enforced against the debtor personally, but I don't think that's your issue. In such situations, the best course of action is for the debtor to file a proof of claim so that the judgment gets paid off in the plan. Not having done that, it has to be paid off in order to refinance the property (unless it can be avoided under a bankruptcy code provision such as impairing an exemption or as a preference).

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Answered on 1/16/03, 2:30 am
John Sawyer Sawyer & Azarcon, P.C.

Re: Status of Judgement when claim not filed

Your question is extremely complicated. In part, it depends on whether or not the judgement is secured, either fully or partially. You need to consult with experienced bankruptcy counsel, ASAP. It also depends on whether or not your case is dismissed rather than discharged.

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Answered on 1/14/03, 6:38 pm


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