If a creditor has been able to win a lawsuit and obtain a judgment against you, you may be wondering whether there is any way to get rid of that lawsuit judgment by filing for bankruptcy. The lawyers here at Marshall D. Schultz have handled thousands of bankruptcy cases over the years and we are
well-versed on the protections available through the bankruptcy process. Providing the debt which led to the lawsuit judgment is dischargeable, you may be able to eliminate your personal liability and get rid of the judgment by
filing for Chapter 7.
If the original debt is non-dischargeable, filing for bankruptcy will not eliminate the debt nor get rid of the judgment. You will still be legally liable for getting the debt paid. Student loans, taxes, court fees, court-ordered restitution, debt incurred through fraud, child support and other similar types of debt are all non-dischargeable through bankruptcy. Judgment liens may qualify for lien avoidance if you are able to conclusively prove the lien stems from a monetary judgment not a settlement, there is equity in your property which can be claimed as a bankruptcy exemption and the judgment lien takes up a portion or the entirety of that equity.
As each case is different, there is no conclusive way to determine whether your lawsuit judgment will be eligible for discharge through bankruptcy without first consulting with a bankruptcy lawyer. At our firm we always take the time to review our clients' financial situations before advising them on how to proceed. Bankruptcy is not right for everyone, however there are many alternatives to bankruptcy which may be able to help you achieve a similar end result.
To find out more about bankruptcy as it relates to lawsuit judgments, or to begin the bankruptcy process, contact our law offices and schedule to meet with a Detroit bankruptcy lawyer at once.