Bankruptcy Erases Most Judgments
By L. Jed Berliner, Western & Central Massachusetts Bankruptcy Attorney on Jun 19, 2009 in Benefits of Bankruptcy, General Bankruptcy Information, Life After Bankruptcy
It often happens that a creditor gets a judgment against you before your bankruptcy case is filed. That judgment is erased by the filing, unless it’s a type of debt that isn’t discharged anyway (fraud, theft, intentional injury, and the like).
This doesn’t automatically mean that you need to file a bankruptcy case. You may be judgment-proof, where you have no unprotected incomr or assets for a judgment creditor to take. You can put off a filing until you need it. The worst that will happen is that the judge might call you in every six months or so to see if your situation has changed which justifies a payment order. Any payment order will go away in the later bankruptcy filing.
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