If I just filed bankruptcy but I get a judgment against me by default, will bankruptcy take care of it?
I cant include that in bankruptcy because i don’t owe that person anything, but I cant afford a lawyer and the plaintiff got one of the best lawyers in town…. So the case is pending right now.
#1 by neet on 11/23/2011 - 8:32 AM
With the new bankruptcy law, if there’s ANY POSSIBLE way they can get the money out of you they will…I believe that you have to include ALL of your debts when you file. If they didn’t receive a judgment amount and you didn’t include it before everything was finished, you’ll still owe.
I’m no expert, but i’m pretty sure that if the bankruptcy case is finished and the other one isn’t, you’ll still have to pay.
#2 by west walker on 11/23/2011 - 8:37 AM
I’m a bit confused since if you have a “default judgment” how can you “not owe anything”??
You can “stay” all legal actions against you if you are in bankruptcy. You should let your bankruptcy attorney know about your default judgment and this case. It is not your responsibility to answer any legal actions during a bankruptcy since you can’t be sued if you “just filed”.
If your bankruptcy has been “discharged” then you are indeed open to a lawsuit. Timing is everything in that instance. Was the lawsuit filed while you were in bankruptcy? What type of bankruptcy are you in? If you are under Chapter 13 you are protected during the long repayment process.
It is your responsibility to notify the BK judge, and BK attorney of any outside lawsuits. You also can notify any lender and attorney suing you of your BK and that will stop the action against you. They have to take their claim to the BK court, if they have any recourse. No one can sue or collect against you during bankruptcy.
A recent bankruptcy can also be amended to include additional creditors and litigation.
Your bankruptcy attorney is paid a set amount by law to answer these types of questions for you as well. Good Luck!
Hope that helps.