Bankruptcy Will Discharge Most Lawsuit Judgments The majority of lawsuit judgments against bankruptcy debtors involve unpaid debts. However, even if the lawsuit resulted in a judgment, the bankruptcy will eliminate your liability as long as the debt qualifies for discharge.

Can I avoid paying a Judgement?

In order to vacate a judgment in California, You must file a motion with the court asking the judge to vacate or “set aside” the judgment. Among other things, you must tell the judge why you did not respond to the lawsuit (this can be done by written declaration). You may even be able to win the case.

What happens to judgments in a Chapter 7 bankruptcy case?

When you file for Chapter 7 bankruptcy, you are looking to wipe out your personal liability for repayment of certain debts. If a creditor sued you and got a judgment before the bankruptcy case is filed, then you may be able to wipe out that liability. But the judgment is a separate matter. It is a record of an official result of a lawsuit in court.

Can a debtor bring a lawsuit against a bankruptcy debtor?

whether the judgment creditor has already placed a lien on your property. The majority of lawsuit judgments against bankruptcy debtors involve unpaid debts. If you don’t pay your credit cards, medical bills, or other personal loans, the lender or creditor can bring a breach of contract lawsuit against you.

What happens to a deficiency judgment when you file bankruptcy?

Your bankruptcy discharge will wipe out your obligation to pay back the deficiency judgment. However, if the lender placed a lien on any of your properties using the deficiency judgment, Chapter 7 bankruptcy will not automatically remove that lien (your discharge only eliminates your personal liability for debts).

Can you file bankruptcy if you have a credit card judgment?

It can be a complicated process, so if a creditor served you with a collection lawsuit but it hasn’t gone to judgment yet, meet with a bankruptcy attorney soon. Bankruptcy might stop the suit and erase the debt automatically, saving you significant time and money.