Van Nuys Lawsuit & Judgment Lawyer
If you have unpaid medical bills, credit card debt, or other types of unsecured debt, you may consider filing for bankruptcy. Bankruptcy is an effective tool for eliminating unsecured debts, including certain lawsuit judgments. For example, if you caused a car accident that resulted in damages, the other driver may sue you to recover financial compensation. However, bankruptcy law in the United States is complex and not all lawsuit judgments can be discharged. Our Van Nuys lawsuit and judgment lawyer can help you determine whether a judgment resulting from a lawsuit is dischargeable.
What Judgments are Dischargeable in Bankruptcy?
If you are struggling with a significant amount of debt from payday loans, personal loans, or medical expenses, you may be able to eliminate them by filing Chapter 7 bankruptcy. Still, certain types of debt in bankruptcy are categorized as priority debts, which means bankruptcy will not discharge them. While some judgments can be discharged, the matter becomes very complex.
The easiest way to determine if a judgment can be discharged is to determine if you can discharge the underlying debt. If a credit card company, medical facility, or bank filed a lawsuit against you and obtained a judgment, you can typically discharge that debt through bankruptcy. Generally speaking, if you can discharge the original debt through Chapter 7, you can also eliminate the judgment resulting from that debt.
As with most laws, though, there are exceptions to the rule. The bankruptcy laws outline certain types of debt, and any judgments attached to them, that cannot be discharged through Chapter 7. These are as follows:
- Certain types of tax debt
- Unpaid child support or alimony
- Debt incurred due to embezzlement
- Debt arising from injuries caused by your own impairment while driving
So, while you could discharge a judgment even if you caused an accident through simple negligence, such as speeding, you cannot discharge the judgment if you caused a drunk driving accident.
Property Liens and Discharging Judgments
Chapter 7 will only discharge unsecured debts. Unsecured debts are those that are not attached to collateral, such as your vehicle or your home. If a judgment creditor has placed a lien on your property, it is then considered secured debt because there is now collateral attached to it.
For example, if a creditor obtained a judgment lien of $5,000 on your property, the debt becomes secured, even if it was once unsecured. Secured liens will survive a bankruptcy case. Additionally, the party that placed the lien on your home may also have the right to force you to sell the property to collect the debt or receive a portion of the proceedings if you sell the property.
Call Our Lawsuits and Judgments Lawyer in Van Nuys for a Consultation
If someone has obtained a judgment against you that you cannot afford, you need legal advice. At Wadhwani & Shanfeld, our Van Nuys lawsuit and judgment lawyer can provide it, determine if the debt is dischargeable, and help you through the process that will get you the best possible outcome. Call us now at 818-658-2669 or chat with us online to request a consultation.
