Not all judgments can be discharged in a Chapter 7 individual bankruptcy filing. Certain types of obligations, including some judgments resulting from them, do not go away, according to Cornell University Law School.Know More
The most common consumer bankruptcy filing is a Chapter 7 petition. Chapter 7 allows for a fresh start, free from consumer debts such as credit card debts and other obligations you cannot pay. Sometimes a creditor may sue in court and obtain a judgment or a medical provider may sue for its bill and obtain a judgment. Those types of judgments are generally dischargeable, meaning they are wiped out, as well as the underlying debt, and the creditor cannot come after you to collect, explains Cornell University.
There are, however, some categories of judgments that are not dischargeable. The law, found at 11 U.S. Code Section 523, is complex and the following list is not exhaustive. These obligations include most taxes, educational loans, obligations for spousal and child support and any obligation that is the result of fraud or other serious wrongdoing. For instance, a judgment for injuries caused by drunk driving remains an obligation, notes Cornell University. As with all legal matters, consult a qualified attorney to answer your specific questions about your particular situation.Learn more about Credit & Lending
Bankruptcy law does not establish a minimum time frame before an individual can file for bankruptcy again, according to NOLO. However, filing too soon after a discharge was received means the individual cannot receive another discharge.Full Answer >
Generally, an individual may choose to file for Chapter 7 personal bankruptcy relief when his expenses and bills outstrip his income. However, a person who wants to file personal bankruptcy must meet eligibility requirements by either proving low income or passing a means test, according to the American Bar Association.Full Answer >
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a process where the debtor's non-exempt assets are sold, and the proceeds are given to his creditors to help repay his debts. Any remaining debt is forgiven, or discharged, and the debtor starts over free of debt. As of 2014, assets that may be exempt include a primary residence, a personal vehicle, household goods and clothing.Full Answer >
The exact amount of time it takes for someone to recover depends on the type of bankruptcy filed, according to Experian. A chapter 7 bankruptcy stays on one's credit report for 10 years, while a chapter 13 bankruptcy stays for seven years. As time goes on, the damage to someone's credit score from the bankruptcy lessens.Full Answer >