Chapter 7 Bankruptcy and Legal Judgments
If you are currently thinking of filing for Chapter 7 bankruptcy, you have undoubtedly accumulated an amount of debt that you’re not comfortable with. It’s also likely that you’re being inundated by calls from debt collectors, at home and at work.
In a worst-case scenario, some of your creditors may have filed lawsuits against you and a judge has awarded them a judgment. This judgment is basically the court ordering you to pay what you owe a creditor. But a judge’s order to pay a bill doesn’t make the money to pay it magically appear in your bank account.
If you find yourself hounded by creditors, and see no relief in sight, you need to speak to an experienced debt reduction and bankruptcy attorney. The San Fernando Valley-based Nader & Berneman has spent more than two decades helping hardworking people like you get out from under suffocating debt so that they can get on with their lives. Contact Nader & Berneman today for a free consultation. It’s time to take control of your life again.
Can Chapter 7 Bankruptcy Discharge Judgments Against You?
Chapter 7 bankruptcy can relieve you of many of your debts, but not all of them. Whether or not judgments against you can be discharged depends on whether or not the judgment is for a dischargeable or nondischargeable debt.
Dischargeable debts are generally debts that have no physical collateral - in other words, there’s nothing you could sell to pay off the debt. For instance, if you bought a mountain bike for $300, have not paid for it, but still have the bike - that would not be a dischargeable debt because you could presumably sell the bike and pay some of the debt back. Typical dischargeable debts include the following:
- Medical bills
- Credit card debt
- Personal loans
- Utility bills
If the judgment against you is for a nondischargeable debt, chances are it will not be dismissible in a Chapter 7 bankruptcy. Debts that are rarely dischargeable in Chapter 7 bankruptcy include:
- Child support
- Spousal support (alimony)
- Debts owed to the government (fines, taxes, court costs, restitution in criminal cases, and more)
- Criminal restitution, including court fines and penalties
- Federal student loans (with some rare exceptions)
- Judgments for death or injury resulting from operation of a motor vehicle while intoxicated
- Homeowners’ association and condominium fees
- Judgments for injuries caused by a malicious or willful act (assault, etc.)
- Judgments for fraud (such as falsifying information on a credit application)
- Judgments for fraud committed while in a position of trust (such as embezzlement from a charitable organization)
A Good Bankruptcy Attorney Can Help
It’s important to remember that nothing is written in stone, and an experienced Chapter 7 bankruptcy attorney can help you get more of your debts discharged than you could on your own. The process of filing for bankruptcy is a complicated endeavor, so why not allow someone who’s been doing it for over two decades take the reins on your case. Call the San Fernando Valley attorneys at Nader & Berneman for a free consultation, at (800) 568-0707.
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