judgments

[billycool]

As many of you know, I'm recently discharged, but am not closed as the trustee is still poking through my assets.....

Here's my question: Just prior to filing Ch. 7, Beneficial filed an $18k judgment against me......what happens to that judgment? I know they can't pursue to collect or garnish wages, etc.......but will that judgment need to be satisfied if, one day down the road, I decide to buy a house? Are there additional steps that I should be taking now to maybe 'vacate' the judgment? Or, is it not something to worry about.....?

[dumpinmydebt]

The judgment will be included in the bk.

[SunshineGal]

The debt will be discharged in the BK, but the lien will remain valid unless you file a motion to vacate. Check with your attorney, ours charges extra to file the motion but it's well worth it.

This assumes Beneficial was actually granted the judgment.

[HMT]

I think you just show the court that made the judgment your discharge papers and they remove the judgment.

[Floridagail]

I also had judgement before filing
My judgement shows satified on my equifax credit report. They cannot come after you for it. I did nothing it updated that way.

[rebuilt]

It seems like everyone wants to file before a judgement hits, but then it is removed in bankruptcy anyway? Is there a reason for this?

Thanks

[gmk]

I believe most people want to avoid the nasty things that can happen after the judgment, like wage garnishment, bank account freezing, liens on assets and the like. Most folks don't want their employers or anyone else for that matter know you're in deep enough for judgments to have happened. Plus, even though they're possibly lifted, the creditors have to cooperate in things like unfreezing bank accounts as recently posted in this forum. It's another hassle.

[rebuilt]

Ok, but no real long term effects? Or is it still kind of there as another black mark on your credit / background check?

I am self-employed currently, have new bank accounts ready to go etc. just in case I need to file, and am current on everything, but if it goes down a bad road, I want to know how big a deal it is to have a judgement, as if I do file, I really want to wait until March or so of next year based on advice due to my particular situation.

Thanks,

Bill

[rebuilt]

Guess my biggest concern is not from cc companies, but from car loans, business loans, or landlords with personal guarantees. I think the landlords would probably not bother if informed I was planning on filing, but the others may move a little quicker, and still go for it. Obviously the cars and equipment are secured so they would want their collateral back.

[billycool]

depends on how creditor-friendly your state is.

I live in Virginia, which is extremely creditor-friendly, which I didn't realize at the time. Beneficial stuck a judgment on me and a month later, my employer received a legal document instructing them to begin garnishing 25% of my wages, which they promptly did. I can tell you it's no fun. It's what put me over the edge and made me realize I had to file, but I wish I'd not messed around and done it before the judgment. By the time I was able to file, $5500 of my wages had been garnished, which I will not get back.

Ok, but no real long term effects? Or is it still kind of there as another black mark on your credit / background check?

I am self-employed currently, have new bank accounts ready to go etc. just in case I need to file, and am current on everything, but if it goes down a bad road, I want to know how big a deal it is to have a judgement, as if I do file, I really want to wait until March or so of next year based on advice due to my particular situation.

Thanks,

Bill

[billycool]

They were granted the judgment...

Seems like there are different experiences with judgments here, but I had heard what you said.....I'll double-check with my attorney, but if anyone else knows what the answer is, I'd love to hear it.

The debt will be discharged in the BK, but the lien will remain valid unless you file a motion to vacate. Check with your attorney, ours charges extra to file the motion but it's well worth it.

This assumes Beneficial was actually granted the judgment.

[Tommyboy918]

I am in the same boat a judgment was entered against me today. And my bankruptcy was filed today also.

[Floridagail]

The reason to file is, Once they have a judgement they can if they choose ask for a informational hearing and get all the information they need from you on where you bank, to freeze bank acct, or garnish your wages It can happen suddenly without notice.

[Tommyboy918]

yes, in Illinois they have to serve you with a citation to discover assets. Which they will ask you all sorts of things.

[Silver26]

We filed about 2 weeks after we got a judgement, I wish we could of gotten it done before then and now its just one extra thing to check on to make sure its taken care of.