Bankrupcy Question - newbie

Discussion in 'Credit Talk' started by Beth44, Sep 8, 2003.

  1. Beth44

    Beth44 New Member


    I am on disability and I have been saving up to file for a chapter 7. I was ready to make my deposit. The attorney was only going to charge 695.00.
    The main reason was to clear two judgements even though I have over 70,000.00 in debt. (mostly medical) When I called to ask a question about what information he needed about the judgements I was told "we do not include the judgements" I said that seems like a crock of..... "well, it can be done but it is alot of extra work".

    Am I thinking wrong here...but arn't judgements part of a normal reason for a person to file for a BK?

    I have no assets...these judgements are not attached to anything. These judgements are large and are preventing me from getting a place for me and my son to live. I would never be able on my income (10K)be able to payback the 4500.00 between the two of them.

    I am in FL. Does anyone know if there is something in FL law that prevents you from dismissing a judgement? Or making it really difficult. The judgements are in IL. Or is this guy just lazy?

  2. snakeman

    snakeman Well-Known Member

    He aint lazy, he's smart.

    695 for a straight forward BK is cheap.
    For him to add in all your judgments would mean extra work and therefore, more money.

    You are in FL and the judgments are from ILL?

    1st you need to be a resident of FL for the better part of 6 months...meaning 91 days.

    You are at an advantage filing in FL while the debts are in ILL. The "411 meeting of the creditors" will take place where you file the BK. In your case you will alienate a lot of creditors from being able to attend the hearing.....which means to you a very good chance of having no objections.

    FL cannot dismiss another states judgments.

    And to your question of "isn't judgments one of the reasons why people file BK?"

    ...yes, but this situation is no exception. I think you may have misunderstood your attorney. I think he was hinting at more money and you didn't get it.

    Hope I could help.

  3. Beth44

    Beth44 New Member

    Thank you Snake Man. I have been here in FL for 4 years now. Yes, most of everything is from IL. Including old some attorney's fees..Wow...your right. More money. Guess I must be a little slow. The judgements are for past rent from when I was very sick. So these are not dischargeable?Oh, my. I suppose I misunderstood.

    Back to the drawing board.

    Thanks again,
  4. snakeman

    snakeman Well-Known Member

    Yeah just so you know, most all debts are dischargable through a chpt 7 BK.

    Some that are not include but may not be limited to:

    1.IRS judgments....though there is some conjecture to this because after so long they too can be.

    2.Child support or Alimony or other support maintenance which also include any court ordered support.

    3.Student Govt. loans and such

    4.Any secured debt is not dischargeable (home auto)
    These must be sold to satisfy debts or in some cases you can keep up to 15K in total assets (these are reffered to as exemptions) or 30K if your married.

    5.Criminal fines, court restitution orders.

    6.Any debt incurred after BK was FILED....not discharged....FILED.

    That's about it...

  5. pd11604

    pd11604 Well-Known Member

    you need to list all your debts !!
    You should be able to have the judgments vacated no matter what state they were filed in. If you don't list them the bankruptcy court won't dismiss them!

    Since you are taking such a big step by filing Ch 7, make sure you get it done right, so that when it's over, it will all be over, and nothing from the past will be able to haunt you.

    I would see what else this lawyer wants in order to include the judgments, and make arrangements if possible, or get another lawyer!!

    This is a big step in your life, and you should do it right..not half-a%#ed!
  6. snakeman

    snakeman Well-Known Member

    I agree.

    Where in FL abouts are ya?

    I know a good firm in the Palm Beach County Area.

    Oh, did I make it clear that judgments are able to be vacated through a chapter 7?

    Hope that helps

  7. keepmine

    keepmine Well-Known Member

    A BK wipes out the underlying debt that created the judgment. To get the judgment vacated, you or your lawyer need to petition the court that granted the judgment to vacate. Here's how one of our memebers handled it:

    Vacating a judgement post BK

    SCMomof5 | 582 posts since Jun 2002 | 10.17.2002 @ 15:27

    OK here you go....

    Using the same case number as the original judgment, file a (simple) "Motion to Vacate (or Set Aside)". In this motion you state that your reason for requesting this is pursuant to USC Title 11 Chapter 5 Subchapter II Section 524:
    " Sec. 524. Effect of discharge

    (a) A discharge in a case under this title -
    (1) voids any judgment at any time obtained, to the extent that
    such judgment is a determination of the personal liability of the
    debtor with respect to any debt discharged under section 727,
    944, 1141, 1228, or 1328 of this title, whether or not discharge
    of such debt is waived;"

    (web page:

    Include the BK Case number, the list of creditors (highlighting this one) and a copy of the discharge.

    I did this, handwritten, mailed to the court in another state and within the month, I had my judgment vacated. I faxed copies of it to the 3 CRAs and it was off by the end of the week!!! :)
  8. Beth44

    Beth44 New Member

    Thanks to all...I sure do feel alot better! I now have a good understanding of how this works. Thanks for the information on getting the judgements vacated.

    This is very important to me and my son. It was the judgements that really prompted this. But, to be honest I don't mind telling Camco and the likes to take a final hike either. LOL. The less stress I have the healthier I am!

    I did find another attorney in town that will charge on a case by case basis...I made an appointment for next week. I also made another appointment with the same attorney next week I do think this is important enough to spend the extra to have it done properly.

    I am in the Ft. Meyers area.

    I do appreciate all your help...Thanks again!
  9. pd11604

    pd11604 Well-Known Member

    Good Luck to you!
    Things will work out for sure!
  10. DanS

    DanS Well-Known Member

    Debt to the IRS does not have to reach the judgement stage to be dismissed. There are some very strict time standards for dismissal, but I got *most* of my IRS and DOR MA tax debt dismissed. On a technicality around the timelines, I still have one year outstanding.

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