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Bankruptcy, through the bankruptcy discharge, makes it possible to clear your liability for certain types of court judgments. A discharge is a federal court order prohibiting your judgment creditors from pursuing you for discharged debts. There are multiple types of judgments. While most types of judgments are dischargeable, there are some that will remain your responsibility in spite of your bankruptcy.
If your debt has become unmanageable and you do not anticipate being able to catch up on your debt in the near future, you may opt to file bankruptcy as a means of debt relief. Filing for bankruptcy protection can stop creditor calls and letters and erase or control your debt. In some cases, filing bankruptcy can also cancel debt judgments.
When you file bankruptcy, you can include most types of debt. However, you may wonder what happens to creditors who have obtained a judgment against you. Such creditors may be in the process of implementing their court orders, or they may have already seized your property or garnished your wages. In most cases, you can include judgment creditors in your bankruptcy whether or not they have executed their judgments.
Filing for bankruptcy is usually an option of last resort when you cannot meet your debt obligations. Other than the federal bankruptcy regulations, Florida statutes also regulate bankruptcy procedures and what happens after bankruptcy is declared. Once you are declared bankrupt by the court, you may have a chance to reorganize your financial life afresh. There are a few changes that have occurred in Florida as a result of the New Bankruptcy Laws passed by Congress in 2005.
There are many ways in which you can have a judgment passed against you including failure to pay child support, dental bills or credit card payments. These judgments against you on your credit report can be potentially detrimental because they will show up on your public record. Anyone who has judgments against them will be faced with challenges, especially when it comes to buying property. Your mortgage broker will be forced to carefully review your situation to see if your judgment is an indication of how you handle your finances. Fortunately, judgments against your credit are not permanent---you can take…
When you file bankruptcy, you are required to disclose all debt and creditor information. For the most part, this is done on your bankruptcy schedules. However, in the case of judgments, this information is also disclosed on the Statement of Financial Affairs. This is required if the proceeding took place within one year of the bankruptcy filing. If the judgment was rendered prior to one year, it is only listed on the schedules as a debt.
Bankruptcy courts are part of the federal court system. Each state has at least one bankruptcy court. In Louisiana, there are two districts: western and eastern. In most cases, bankruptcy information is public record and can be easily accessed by anyone that wishes to search for it. The Louisiana bankruptcy courts provide an easy telephone method for accessing bankruptcy information as well as a way to generate copies of court filings if needed.
When someone does not pay a bill as promised, the creditor has the legal right to pursue a civil judgment against that person. If the consumer loses the lawsuit, a judgment is entered, which can lead to wage garnishments. At this point, some people may choose to file bankruptcy, according to the book “How to File for Chapter 7 Bankruptcy.” Before filing bankruptcy because of a judgment, consider the potential financial and personal implications of both situations.
Appealing a bankruptcy judgment, order or decree ot made to a federal district court or a special bankruptcy appellate panel, depending on your location. Appeals take place in a shortened version of the initial hearing with oral arguments and financial documents presented for the record.
Simply put, a judgment on your credit report will ruin your credit for a long time. You will be prevented from purchasing a home, renting or acquiring new credit. You may lose out on a dream job with a tainted credit record. In the midst of these horrific images, you do not have to feel vulnerable or discouraged. Knowing a few facts on how the system works will greatly assist you in taking the first steps to remove a judgment from your credit report and your life.
Considering filing for bankruptcy raises a number of questions. For example, if you have a judgment against you in a civil case you might wonder how a bankruptcy will affect that debt. Before making a decision about filing bankruptcy, and which type of bankruptcy to pursue, you need to address these issues.
A judgment is the legal term for the final decision in a judicial proceeding. A judgment might be criminal or civil. It decides who won the lawsuit, and usually orders somebody to take some action. The penalties for violating a judgment can be severe.
