Types of Civil Judgements
Civil judgements occur when one party loses a lawsuit, involving a dispute between two private parties. They typically involve:
- contract disputes,
- personal injury disputes,
- liability disputes,
- divorce cases,
- real estate disputes,
- job or employment discrimination.
If civil judgements are not paid, the judgement holder is entitled to get it from the losing party's bank account, by levying his or her wages, or by placing a lien on a home. Filing bankruptcy puts a stop to such collection efforts.
Eliminating Civil Judgements
Losing a lawsuit can result in owing another party a significant sum of money, called a judgement. Often, such judgements are a contributing factor for those considering bankruptcy.
Debt from civil judgements can be entirely forgiven or "discharged" with both Chapter 7 and Chapter 13 Bankruptcy.
Under Chapter 7, the debt is entirely forgiven; with Chapter 13, the debt is either entirely forgiven, or a portion of the debt could be paid back over 3 or 5 years.
Meeting with a Bankruptcy Lawyer
When filing either Chapter 7 or Chapter 13 Bankruptcy, debt from civil judgements against you needs to be listed in the Bankruptcy paperwork in order to be discharged.
When meeting with a Bankruptcy Lawyer, it's best to either bring all civil judgement paperwork with you, or to have the total debt that you owe known. This information will be needed by the attorney when recommending the right type of bankruptcy for your situation.
To meet with a bankruptcy lawyer, fill out our quick appointment form.
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