Judgments And Bankruptcy?
If a person files for either Chapter 7 or Chapter 13, they must include all their creditors, that includes civil judgments. If you live or own property in Florida and had a judgment against you when you filed your bankruptcy, you may want to consider speaking with your attorney about petitioning the state court to deem the judgment discharged.
You may ask why, I thought my bankruptcy discharge resolved me from the debt and the bankruptcy court avoided the lien? While that is true, the discharge resolved your obligation on the debt, the judgment still remains on the public records and may cause issues on some situations such as when you attempt to obtain a loan or get title insurance during real estate closings.
In most circumstances, the issues you face can be cleared up by providing a copy of your discharge along with evidence that you included the judgment debt in your bankruptcy case. Going through that process may be a mere inconvenience once, but if you have to do it each time you obtain a loan or close on a property, it can become quite burdensome.
In Florida, to avoid this burden, you can petition the state court to declare the judgment discharged and record a copy of the state court’s declaration on the public records so it is clear to everyone that the judgment is no longer an issue; essentially you go through the process of showing the debt was discharged once and never have to worry about it again.
Remember, the bankruptcy is meant to give you a fresh start; ensure you take all the steps necessary to put all the burdens of your financial past fully behind you. If you had a judgment against you before you filed your bankruptcy, contact an attorney to discuss whether further steps are necessary to help you move forward.
(Incidentally, one year must have passed from the entry of your discharge prior to seeking the relief discussed.)
This Blog was written by Attorney David Fineman, Esq. of The Dellutri Law Group, P.A. Mr. Fineman practices Bankruptcy Law, Fair Credit Reporting Act Law, Fair Debt Collection Practices Act Law and in other areas of Consumer Law.
