Can a judgment be renewed after bankruptcy?
Can a judgment be renewed after bankruptcy?
California allows the judgment to last ten years and it can be renewed for an additional ten years if the creditor files the required forms in a timely fashion. Failure to renew the judgment prior to the ten-year time limit voids the judgment forever.
How is a deficiency judgment discharged in bankruptcy?
Unless your lender has placed additional liens on your other assets after obtaining the deficiency judgment, the judgment is no different than any of your other general unsecured debts (such as credit card debt or medical bills). Your bankruptcy discharge will wipe out your obligation to pay back the deficiency judgment.
What’s the best way to discharge a judgment?
3) Discharging the judgment through bankruptcy. If all else fails, most judgments can be discharged in bankruptcy. Notable exceptions are judgments based upon fraud and elder abuse. If you qualify for bankruptcy and otherwise feel that bankruptcy is right for you, you should consult a bankruptcy attorney right away.
What happens to a judgment when you file bankruptcy?
When you file for bankruptcy, holders of judgments against you are required to stop efforts to collect what you owe them, so any wage garnishments or collections from bank accounts must cease. Any pending lawsuits seeking judgments against you are also suspended, and typically dismissed or withdrawn upon completion of the bankruptcy process.
What happens when you file a mortgage deficiency judgment?
Lawsuits like these commonly force consumers into bankruptcy. Filing for bankruptcy eliminates the debtor’s personal liability for the underlying mortgage. In the example above, filing for bankruptcy would prevent the mortgage lender from seeking a deficiency judgment after foreclosure, the remaining mortgage balance would be discharged.
Unless your lender has placed additional liens on your other assets after obtaining the deficiency judgment, the judgment is no different than any of your other general unsecured debts (such as credit card debt or medical bills). Your bankruptcy discharge will wipe out your obligation to pay back the deficiency judgment.
Lawsuits like these commonly force consumers into bankruptcy. Filing for bankruptcy eliminates the debtor’s personal liability for the underlying mortgage. In the example above, filing for bankruptcy would prevent the mortgage lender from seeking a deficiency judgment after foreclosure, the remaining mortgage balance would be discharged.
What are the types of nondischargeable judgments in bankruptcy?
Some of the most common types of nondischargeable judgments include those related to or arising out of: death or injury caused by debtor’s drunk driving. When you receive a bankruptcy discharge, it wipes out your personal liability for all discharged debts.
What happens when a lawsuit is discharged by bankruptcy?
Fortunately, filing for bankruptcy can stop the garnishment and wipe out your obligation to pay back discharged debts. If a lawsuit is still pending, the bankruptcy’s automatic stay will stop it from moving forward. However, even if the lawsuit has already resulted in a judgment against you,…