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.
bankruptcy and your credit report
Why you should check your credit report after filing bankruptcy.
When you file for bankruptcy, the bankruptcy shows up on your credit report as a public record. Filing bankruptcy also affects the individual credit accounts or tradelines in your credit report.
Public Record Reporting
If you file chapter 7 bankruptcy, the bankruptcy can remain on your credit report for 10 years from the date of filing bankruptcy. If you file chapter 13 bankruptcy, the bankruptcy can remain on your credit report for 7 years from the date of filing bankruptcy.
But how should your individual accounts be reported on your credit report after filing bankruptcy?
Chapter 7 Bankruptcy Discharge
After filing chapter 7 bankruptcy, your credit report should list zero balances for discharged debt, and include language to the effect of “discharged in bankruptcy” or “included in bankruptcy.” Your credit report should not list any discharged debt with a balance, or report the account as open or charged-off following your bankruptcy.
Chapter 13 Bankruptcy
After filing chapter 13 bankruptcy, your credit report should accounts should list the balances for each account you are required to pay through the chapter 13 plan while your bankruptcy is pending.
Since a chapter 13 plan can take 3-5 years to complete, your accounts should include language to the effect of “involved in chapter 13 wage earner plan” or “making payments in wage earner plan” while your bankruptcy is pending. Your credit report should not list these accounts as open or charged-off while your bankruptcy is pending.
After receiving a chapter 13 bankruptcy discharge, your credit report should include language to the effect of “discharged in bankruptcy” or “included in bankruptcy” for the accounts that were discharged in bankruptcy. Your credit report should not list any discharged debt with a balance, or report the account as open or charged-off following your bankruptcy.
Our Michigan bankruptcy lawyers and credit lawyers can help answer your questions.
If you have any errors on your credit report, or have questions about filing bankruptcy and the effect on your credit, contact one of our Michigan credit lawyers at (313) 415-5559. We have offices in Southfield, Michigan and our Michigan bankruptcy attorneys can also help you file bankruptcy.
SHOULD I FILE FOR BANKRUPTCY?
Whether to file bankruptcy can depend on many different things. For some, bankruptcy can be a first and only option, or a last resort.
Who is a good candidate for bankruptcy?
If you are considering filing bankruptcy, you probably have too much debt to repay. Chapter 7 bankruptcy allows you to liquidate or eliminate this debt without having to repay discharged debt. Chapter 13 bankruptcy allows you to repay some portion of the debt you owe for a 3-5 years.
Chapter 7 candidates typically have minimal assets, modest to low income, and high credit card or other consumer debt. In fact, when we speak to potential bankruptcy clients, our main points of inquiry are: income, assets, and type of debt.
Depends. Some people can avoid filing bankruptcy by agreeing to debt settlements with their creditors or by pursing creditors and debt collectors who violate the Fair Debt Collection Practices Act (FDCPA) or the Telephone Consumer Protection Act (TCPA). The key is to plan as early as possible. This means before you default on credit card debt or shortly after defaulting on credit card debt. You need to know your rights before dealing with abusive debt collectors.
Debt collection harassment is a serious issue. If you are receiving unwanted collection calls, or if debt collectors are sending you abusive harassing, or threatening collections letters, you may be entitled to damages against abusive creditors or debt collectors. Some individuals have eliminated thousands of dollars in debt and recovered thousands more against creditors and debt collectors who violate federal consumer protection laws. You should speak to a knowledgeable consumer protection lawyer to learn about your rights under the Fair Debt Collection Practices Act and the Telephone Consumer Protection Act.
Our Michigan bankruptcy and consumer lawyers are happy to answer any questions you have. Please contact us at (313) 415-5559. We have offices conveniently located in Southfield, Michigan and Dearborn, Michigan.