Can a judgement go away via Bankrupcy?

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Can a judgement go away via Bankrupcy? - 10/6/2009 12:12:40 PM

pahunkboy

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This would be in Pennsylvania. Chapter 7. How does this go- they get a judgment then go after assets? I thought that if they put a lien on a house that one then can not sell the house, but when said house changes hands then the lien must be paid.

But that they cant make you sell the house?

Does anyone know?

I tried doing a search and no luck on specifics.

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RE: Can a judgement go away via Bankrupcy? - 10/6/2009 2:17:26 PM

CalifChick

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The short answer is "it depends"... It depends on the specific details in your case.

Chapter 7 is a liquidation bankruptcy... liquidating any assets you have (except for exempt assets). Depending on the equity in the home, the home may be sold and the lien satisfied before the remaining proceeds of the sale are distributed to creditors.

And yes, depending on the value of the home and whether you are current with payments or not, they CAN make you sell the home (actually, you give up the home; you don't sell it yourself). If you want to keep assets, you generally file Chapter 13, which is Debt Reorganization, and not 7, which is Liquidation. But as I said, there are exemptions and exceptions.

See question 10 and others here: http://www.pennsylvania-bankruptcy.com/faq.html

Cali
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RE: Can a judgement go away via Bankrupcy? - 10/6/2009 8:00:42 PM

Muttling

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It's even more complicated than the chick from California suggests......

Bankruptcy (ch 7 or 13) can make a civil judgement go away. A chapter 7 says "Go away NOW" where a chapter 13 says "I will try to pay something and you will go away a bit later." (3 to 5 years.) That something is normally 20 cents on the dollar.

Here's the crappy part.......A judgement is just like a mortgage on your property IF they register it with the registrar of deeds. If they don't, it's just like any other creditor you have. If they register it AND you own property, it's a new mortgage on that property.

Here's the REALLY crappy part........you can kill the debt with a bankruptcy but the litigation required to remove the judgement will cost about $1,000 extra. You can just file on it and stay in the property for about 10 years (the time required for the judgement to die) or you can try to sell it earlier which will cost you about $1,000.

End of story and MOST importantly.........If you're asking these questions, you need to consult an attorney. I don't care if you're the debtor or the creditor. You need to talk to an attorney.

< Message edited by Muttling -- 10/6/2009 8:04:42 PM >

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RE: Can a judgement go away via Bankrupcy? - 10/6/2009 8:30:45 PM

soul2share

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And the state you are in when you file has NO bearing on what is kept, given away or settled....bankruptcies are filed into federal court....you can go online and get the paperwork to do it yourself if you think you're smart enough.......then all you pay is the filing fees.

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RE: Can a judgement go away via Bankrupcy? - 10/6/2009 9:54:07 PM

Termyn8or

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A bankrupcy is not a forgiveness of debt, it is merely an estoppment of collection action. If you owe the money you will always owe the money. That does not mean you can't get credit again. In fact you might get some good offers because they know you can't file again. It used to be for seven years, but today I think you would be lucky to get one chapter seven in a lifetime.

Looking at the whole picture is very important before you start on that path. Corrollary in mail.

T

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RE: Can a judgement go away via Bankrupcy? - 10/6/2009 10:05:11 PM

CalifChick

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From what I found, one of the few things that states have control over is what is an exempt asset and what is not. For many states (and it appears PA is one of them), a lien against your home is a secured debt. The debt is secured by the home, and is not discharged in Ch 7. See the examples in the link I gave you. And please talk to an attorney.

Cali

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RE: Can a judgement go away via Bankrupcy? - 10/6/2009 10:22:41 PM

ThatDamnedPanda

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quote:

ORIGINAL: soul2share

And the state you are in when you file has NO bearing on what is kept, given away or settled....bankruptcies are filed into federal court....you can go online and get the paperwork to do it yourself if you think you're smart enough.......then all you pay is the filing fees.

True. But as someone who did that, many years ago in the midst of a catastrophic health crisis, I would strongly recommend against it. It's a certainty that you're going to miss a few things that a trained lawyer would know to look for, and depending on which details you miss, it could cost you dearly. And you don't get a do-over - once it's done, it's done, and if there's anything you forgot to list or otherwise missed, you're just shit out of luck.

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 5:07:10 AM

pahunkboy

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I did a chap 7 in 04. I think it has to be 8 years now- not 7.

Altho 13 might still work.

Get a load of this! The sheriff office phoned me and said we have papers for a civil action for you to pick up at the court house. I then would not agree to pick it up as I told him that his call was an unusual call. He asked to drop it over- I said that will be fine.

PA is one of 3 states that are not wage attachment states.

So lets say they complete the court thing and now have a judgment. Is that an automatic attach to assets? If I make partial payments- then it would be an attempt to pay. $1 is a nice round number.

If they take my house then fuck paying the mortgage.

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 5:22:53 AM

pahunkboy

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Hello.

I am trying to ask the attorney office that did my bankruptcy. At that time it was money well spent. Maybe over the phone- I can get a general idea on what is best to do to proceed.

Being that we had a business relationship- I am less of a new contact to his office,

I am trying not to let this ruin my good mood.

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Post #: 9

RE: Can a judgement go away via Bankrupcy? - 10/7/2009 6:14:55 AM

pahunkboy

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...OK. To ask for a continuance- I first must have a hearing scheduled. I can do this form myself- (info comes from the court itself.)

So- observing how the legal thing goes they wait till the last day. But in case I get sick- or other things come up- once I have a date then if anything it buys time.

I understand that they do what they have to do- I further understand that in reply I must do what I have to do.

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 7:06:23 AM

barelynangel

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I am not sure i understand what you are saying, you want to file bankruptcy now due to some place placing a judgment on you -- read the paperwork, you may be able to request a hearing date and/or then set up a payment plan. Is there a reason you don't want to pay this debt? Is the debt actually something you owe? Most places do not want to place judgments but they want to work with people to get it paid because to enforce a judgment takes money they aren't always able to get back. I think with regard to the house you are thinking of a lien against your home not a judgment type idea. A lot of times a lien is simply notification that you are selling so that you have to pay them before you get any proceeds from the sale. (NOT QUITE sure about this though)

Is there a reason you don't want to set up a payment plan but instead want to bankrupt yourself over one debit? Its good you are talking to a bankruptcy attorney because i believe if you file, you may have to liquidate your assets and they may say yes liquidate your home and if you have a judgment, that liquidation will pay as much of the debts people lay claim too that you do owe. I do think in bankruptcy though they HAVE to lay a claim for a debit, so if you file and they don't -- then they do lose out.

I really don't think you just get a free ride with bankruptcy where all your debit just goes away and you keep what you have, like i know student loans are not something you can discharge through any bankruptcy -- my friend forgot to ask before filing and now has a bankruptcy and the loans still to pay. Also they will look at all your assets which means stocks, money in the market, savings, cars, homes, etc. So I am sure you are but be careful you don't end up with anything including no credit to rent an apartment, or even get a job because they checked your credit. I also "believe" medical judgments are very hard to discharge in bankruptcy also.

angel

< Message edited by barelynangel -- 10/7/2009 7:07:31 AM >

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 7:21:11 AM

pahunkboy

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I want to thank people for these replies- as I at first did not want to disclose this event.

Barely, I prefer not to bankrupt. I refused payment because my experience is that partial payments are not acceptable.

If we set up a payment plan it sure can NOT be the $500 a month they were getting. (credit card debt- unsecured)

If we took my budget- 2009 it is pretty tight. Crunch the numbers and many would wonder- how does he do that. Right now I have not paid the house payment- as I have till the 14th before a late fee kicks in. I will pay it- it is just my checking had too much money in it- I had $12 in it and they said I had $54 in it- which can not be correct. So I do not want bounced checks.

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 8:00:31 AM

LaTigresse

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Give them some of that silver you are hoarding to pay your debt.

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 8:02:17 AM

ThatDamnedPanda

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Maybe you could sell off some silver...

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 8:03:51 AM

ThatDamnedPanda

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Oh. Figures she'd be the one to beat me to it!

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 8:07:10 AM

pahunkboy

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quote:

ORIGINAL: LaTigresse

Give them some of that silver you are hoarding to pay your debt.

Gold/silver is an outdated relic.

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Post #: 16

RE: Can a judgement go away via Bankrupcy? - 10/7/2009 8:08:16 AM

pahunkboy

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quote:

ORIGINAL: ThatDamnedPanda

Maybe you could sell off some silver...

No. I will need that to eat.

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 8:13:55 AM

ThatDamnedPanda

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Then sell whatever radio you use to listen to those wackos who are telling you the world is going to end next Tuesday. That'll kill two birds with one stone!

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Panda, panda, burning bright
In the forest of the night
What immortal hand or eye
Made you all black and white and roly-poly like that?

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Post #: 18

RE: Can a judgement go away via Bankrupcy? - 10/7/2009 8:16:57 AM

pahunkboy

Posts: 33061
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From: Central Pennsylvania
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Ya know YOU piss me off!

Maybe someone might have learned something from this thread.

so WHATEVER.

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RE: Can a judgement go away via Bankrupcy? - 10/7/2009 8:21:59 AM

ThatDamnedPanda

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quote:

ORIGINAL: pahunkboy

Ya know YOU piss me off!

Sorry. But you can't deny the irony, can you?

quote:

ORIGINAL: pahunkboy
Maybe someone might have learned something from this thread.

I hope so. For your sake.

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Panda, panda, burning bright
In the forest of the night
What immortal hand or eye
Made you all black and white and roly-poly like that?

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Post #: 20

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