An old adage says that liens "pass through bankruptcy" unaffected. As old adages go, it's right as much as it's wrong. Particularly when referring to judgments against someone's homestead which are normally subject to "avoidance." But a July, 2012 court decision puts that in doubt...
Bankruptcy might be something to consider, even if you don't own any property. But people are often surprised to learn that even if they don't file, their property may be protected (exempt) under their state's exemption laws. Debtors...
My response: A judgment refers to a decision by a court that has been entered into the public record.Are judgments considered secured debt? Or, are they only considered secured to the point of being a lien above and beyond any exemptions? Isn't a judgment simply a finding by the court that you owe a debt? I am particularly interested in how judgments are dealt with in a chapter 13. I'm trying to avoid filing a 13 while I wait to see what happens with my income (up or down), and I could feasibly live through a few months of wage garnishments if necessary. However, if judgments themselves create a problem, maybe I should just file?
