WebYou can file for bankruptcy to pay back a delinquent mortgage, discharge medical debt or credit card debt, and, in some cases, avoid paying a judgment. If you have a judgment against you, that means a creditor filed a lawsuit and obtained a court order indicating that you were legally required to pay the debt. WebNot so. Bankruptcy discharges judgments. The debt underlying a California judgment remains just as dischargeable as it was before the case was filed. And, a judgment in …
When Bankruptcy Is the Best Option - NerdWallet
WebIf you file for bankruptcy, you can get rid of judgment liens on your property through a process called lien avoidance. a judgment lien if you meet all of the following four conditions: The lien is the result of a court-issued money judgment. WebSep 21, 2024 · Encourage the debtor to pay you voluntarily If you are too aggressive in collecting your judgment, the debtor may file for bankruptcy. This means you would have to file a claim in federal bankruptcy court. Because small claims are $7,500 or less, most small claims debtors can make payments over time.; capital gains tax on company sip shares
Can You File For Bankruptcy to Avoid Paying a Judgment?
WebJan 27, 2024 · If you do not, the judgment creditor can use the judgment to obtain something known as a wage garnishment or bank levy. A garnishment legally allows your judgment creditor to have a portion of your wages withheld by your employer and paid to them until the judgment is paid in full. WebLegal Updates How Defendants May Use Bankruptcy to Avoid Paying Judgments Defendants in personal injury lawsuits can end up owing the plaintiff a significant amount of compensation, whether as part of a settlement or as a consequence of a court judgment. In simplified terms, the successful plaintiff becomes a creditor of the defendant. WebSep 12, 2024 · Can you file bankruptcy on a judgment? The simple answer is yes, but avoiding liens through bankruptcy can be a tricky;process. The best way to protect … capital gains tax on cash gifts