Vacating Judgment after BK

[PHXDWTN]

IBroke: What is the statute of limitations on judgments in your state? In Arizona it's 5 years and can normally be renewed indefinitely but I've been told that since the underlying debt that created the judgment has been discharged, the judgment can't be renewed so it will automatically be void even if the judge doesn't sign off on the motion to vacate.

[IBroke]

I saw this too on another board someone gave you. Good Luck. I'll be looking for your outcome.

Thanks! Hopefully, I don't have to file a new motion because I didn't mention the "524". However, I requested to vacate based on Florida law that it "is no longer equitable that the judgment or decree should have prospective application".

Since there are no liens tied to this judgment, the judgment was limited to my personal liability. And as you can see, my BK-discharge voided the judgment in that regards. That means the judgment has NO prospective application and needs to be vacated. It will be very interesting to see what happens but it seems that several other people vacated their judgment based on their BK-discharge. Looking at the laws, I honestly don't see a reason why it shouldn't be possible - either now or in a year.

[Freddy03]

Hmm, I'm not so sure any more. After a long research, I found the following:

http://www.law.cornell.edu/uscode/ht...4----000-.html

§ 524. Effect of discharge

(a) A discharge in a case under this title—
(1) voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged under section 727, 944, 1141, 1228, or 1328 of this title, whether or not discharge of such debt is waived;

http://dictionary.reference.com/browse/voids

"to depart from; vacate"

I located this info on a different forum and the person (BTW, from FLORIDA) used this to successfully vacate a judgment.

I saw this too on another board someone gave you. Good Luck. I'll be looking for your outcome.

[IBroke]

But bankruptcy -- even a discharge in bankruptcy -- is not grounds for vacating a judgment.

Hmm, I'm not so sure any more. After a long research, I found the following:

http://www.law.cornell.edu/uscode/ht...4----000-.html

§ 524. Effect of discharge

(a) A discharge in a case under this title—
(1) voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged under section 727, 944, 1141, 1228, or 1328 of this title, whether or not discharge of such debt is waived;

http://dictionary.reference.com/browse/voids

"to depart from; vacate"

I located this info on a different forum and the person (BTW, from FLORIDA) used this to successfully vacate a judgment.

[IBroke]

I'm in FLA and just happened to speak with a lawyer here today and she was unaware this could be done.

That doesn't surprise me. I guess the same applies to the majority of judges.

If you want to do something in the leagal field that ISN'T done every day, you have a problem..

[df04527]

I'm in FLA and just happened to speak with a lawyer here today and she was unaware this could be done. Anyone know anything more specific for FLA by chance?

[IBroke]

Yeah - it will be very interesting to see what the response of the court will be. Also possible that I have to wait another year due to this FL-law..."BK must have been discharged for a year"...

[discombob1]

So maybe the reason it is so confusing is it's state dependent. From what was posted it seems the FL law is less clear, thus less well known by judges.

[PHXDWTN]

Sounds like you can vacate your judgments if you are in Michigan.

[discombob1]

I am wondering if this is a state by state issue? Doing my own research regarding my state of Michigan, I found this:

600.2914 After a bankrupt has been discharged from his debts pursuant to the federal laws relating to bankruptcy, the bankrupt, his receiver, his trustee, or any other interested person or corporation may apply to have a judgment debt canceled and discharged of record upon proof of the bankrupt's discharge. Application for equitable relief shall be made to the court in which the judgment was rendered against the bankrupt, or if it was rendered in a court not of record, application shall be made to the court in which it became a judgment by docketing. If it appears upon the hearing that he has been discharged from the payment of that judgment or the debt upon which that judgment was recovered, an order shall be made directing that the judgment be canceled and discharged of record. This order shall recite that the judgment is canceled and discharged because of the bankrupt's discharge in bankruptcy. The clerk of the court shall then discharge the judgment by marking on the docket that the judgment is canceled and discharged by order of the court because of the defendant's discharge in bankruptcy, and the clerk shall mark the date and entry of the order of discharge.

So if I'm reading it right, I can vacate my judgments in Michigan?

[PHXDWTN]

Thank you Des, good to know that if it can't be resolved through the Motion to Dismiss, it will eventually fall off. The judgment was filed Oct. 2008.

[despritfreya]

Des: I saw you mentioned that the judgment will become stale and fall off on it's own because it cannot be renewed. Is thus because the debt attached to the judgment has been discharged? I read online that in AZ a judgment stays recorded for 5 years but can be renewed ever 5 years indefinitely so I'm a bit confused.

The act of renewing would be a violation of 524 therefore the creditor will take no further action and the judgment will "expire" by operation of State law.

Des.

[IBroke]

Thanks, des.!

I'm aware of the fact that the judgment - if NOT vacated - stays on my report for the period allowed by law. Just like any other derogatory account included in Bankruptcy. HOWEVER, accounts IIB have to show a $0 balance - and the judgment on file is reported with a $25,000 liability. That's the issue I'm having with it.

The good thing in my case is that the judgment is already a couple of years old - and the effect on the credit-score is not that devastating on public records 2 years and older. In 2013, it should fall off anyway.
I'm just not happy with this reported HUGE liability that TransUnion is reporting. Looks VERY bad on manual credit-checks. Equifax is reporting a $0 liability and I believe that's far more accurate.

[PHXDWTN]

Des: I saw you mentioned that the judgment will become stale and fall off on it's own because it cannot be renewed. Is thus because the debt attached to the judgment has been discharged? I read online that in AZ a judgment stays recorded for 5 years but can be renewed ever 5 years indefinitely so I'm a bit confused.

[tobee43]

well...i certainly know that i'm totally confused here....after our discharge i filed an order to vacate an existing judgment that was turned into a "lien".....i filed it with the bk court.....a few months after our discharge....i then rec'd a signed court order vacating the judgment???? now...although i LIVE in florida and filed the order in florida the judgments were in nj.....

i took the signed court orders and promptly scanned them into my computer just in case something comes up where or if they appear in the future....now...my computer is down...but as soon as it's up i can explain what the actual orders verbal states.

so now i'm totally confused after reading this thread...what my court orders are valid vacating the the judgments????