Some judgements can be discharged through bankruptcy. Filing for bankruptcy will initiate an automatic stay that prevents all lawsuits against you from proceeding temporarily. Many judgements from creditors can be discharged through bankruptcy. Civil judgements are more difficult to discharge, but are also possible. Some civil judgements can be discharged in bankruptcy. Exceptions are judgements on nondischargeable debt like child support or lawsuits over fraud/embezzlement, death or injury from intoxicated driving, or purposeful damage or harm to a person or property. The plaintiff may also choose to file an adversary proceeding to continue pursuing the judgement.Can Civil Judgements Be Discharged in Bankruptcy?
Can Judgements Be Discharged in Bankruptcy? FAQs
A judgement is a court's decision in a civil lawsuit that determines the rights and obligations of the parties involved. It may require one or more of the parties to take certain actions, such as paying money, transferring property, or performing services.
Yes, some judgements can be discharged in bankruptcy if they meet certain requirements set out by the Bankruptcy Code. The debtor must demonstrate that it would cause an undue hardship for them to pay back the judgement amount.
Judgements based on fraud, intentional tortious injury (such as assault), or criminal penalties cannot be discharged in bankruptcy.
No, judgements for child support and alimony are not dischargeable debts in bankruptcy and must be paid regardless of a debtor's bankruptcy filing.
The process to discharge a judgement in bankruptcy can vary depending on the type of judgement and other factors, but typically takes three to six months from filing for the discharge to occur. It is important to consult with an attorney regarding the specifics of your situation before beginning this process.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
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