If you are sued and a creditor gets a judgment against you, you may be able to discharge your personal liability for that judgment in a Chapter 7 bankruptcy, and your credit report should list the judgment as included in bankruptcy or discharged in bankruptcy.
This will depend on whether the underlying debt on that judgment is dischargeable in bankruptcy or nondischargeable.
Certain debts are usually not automatically nondischargeable, such as student loans, child support or spousal support obligations, debts owed to government entities (fines, taxes, court costs, restitution in criminal cases, etc., post-petition HOA and condo fees, and, death or injury caused by driving under the influence, or DUI.
Other types of judgment debts may not be dischargeable if the creditor objects to a discharge, including, injury caused by a willful or malicious act, such as assault, fraud used to obtain money, goods or services, or fraud committed while in a position of trust, such as embezzlement while acting as a trustee or guardian.
Even if you are able to discharge your personal liability on the judgment, there may be a lien that survives the bankruptcy. Under certain circumstances, you may be able to avoid a judgment lien in the bankruptcy, depending on available bankruptcy exemptions. You should speak to a knowledgeable bankruptcy attorney about whether you can avoid a judgment lien in bankruptcy.
If a creditor sues you and gets a judgment for debts, including a judgment for credit card debt, medical bills, lease or rental agreements, and the debt is later discharged in bankruptcy, you should check your credit report to ensure that the judgment is updated after the bankruptcy.
Judgments can remain on your credit report for up to 7 years from the filing date. Your credit report should accurately report public record information, including judgments.
After filing bankruptcy, a judgment on a discharged debt should be reported as included in bankruptcy or discharged in bankruptcy. You should check your credit report to ensure that the credit bureaus do not incorrectly report the status of the judgment, or report a current balance for discharged debt.
If you believe your credit report contains errors, or incorrectly reports debts or judgments that were discharged in bankruptcy, contact one of our attorneys today at (313) 415-5559 for a free consultation.
A lot of people wonder what they can do to stop collection calls or to stop other forms of creditor harassment. One of the first things people experience when they fall behind on credit cards or other forms of debt is collection calls to their mobile phone. Your creditors and debt collectors know that if they bombard you with calls to your mobile phone, you will be thinking about the debt you owe them every second of every day. The Telephone Consumer Protection Act can help you stop these collection calls, and even help you recover damages against creditors who violate the TCPA.
The TCPA prohibits the use of automated telephone dialing systems ("ATDS") without prior express consent of the consumer. Penalties for violating the TCPA can include statutory damages of up to $1,500 per telephone call.
If you are receiving unwanted collection calls or being harassed by your creditors, contact one of our Michigan consumer protection attorneys to learn more about your rights under the Telephone Consumer Protection Act. You can reach us by calling our office at (313) 415-5559 or by emailing Nick Hadous at firstname.lastname@example.org. The consultation is free and always confidential.