Judgements are court decrees that state you owe the creditors money. If you do not pay the bills on time, the creditors may seek to take your private possessions or take your salary to settle the debt. You can contact Fong Law Group if you live in Monterey Park California and surrounding areas to go over your options to prevent or stop a judgement.
Is It Possible to File for Bankruptcy If You Have Judgments?
Because a judgment may have such a negative impact on the credit score, many individuals question if there is a method to get it cleared up. Many professionals would advise you to file for lawsuits, but does it clear all of your debts?
You will be free of all obligations or debts owed to creditors if you file for bankruptcy. However, if a judgement has been entered and a mortgage has been charged, bankruptcy would not be able to eliminate the lien.
You can get some claims on the property dismissed by asking the lawyer to file a petition with the court. However, it is preferable to cope with bankruptcy lawsuits before they become a lien on the property.
Most Bankruptcy Lawsuits will be Discharged If You File for Bankruptcy
Unpaid debts account for the most court judgments against bankruptcy creditors. The lender can sue you for the violation if you don't repay the personal loans, hospital expenses, or other secured loans. If the lender gets a judgment, they have the option of garnishing your earnings or seizing your property to pay the debt, depending on what type of debt it is.
Fortunately, declaring bankruptcy can halt the seizure and eliminate the debt repayment obligations. If a dispute is still ongoing, an automatic stay imposed by the bankruptcy may prohibit it from proceeding. Even though the case ended in a judgment, if the debt is eligible for dismissal, bankruptcy will remove the liability. However, if the judgment is for a non-dischargeable liability, bankruptcy may not be able to discharge it.
If a lender has issued you with bankruptcy lawsuits but it hasn't come to judgement yet, contact a bankruptcy lawyer as soon as possible. Bankruptcy may be able to stop the lawsuit and immediately eliminate the loan, sparing you effort and money.
Is this a Non dischargeable Bankruptcy Judgment?
Start by evaluating whether the liability is Non dischargeable while considering if bankruptcy will erase a judgment. The following are examples of non-dischargeable debts:
- Loans for students (with exceptions)
- Obligations for child benefit or spousal assistance
- Fines, royalties, court expenses, and other payments payable to government agencies
- Driving while inebriated results in mortality
Don't think you're out of the woods if the decision isn't in the Non dischargeable group. Other forms of debts, like liabilities tied to fraud, may be non-dischargeable when the collector objects.
Is it Possible to Prevent a Judgment Levy in Bankruptcy?
If the borrower's claim is still linked to the assets, like your home, getting a bankruptcy clearance will provide little relief. If the mortgage is still in place, the lender will have the option of selling the property once the bankruptcy process is completed or waiting till you sell it to claim its portion.
Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.