Can you file bankruptcy on a court ordered judgement?
My wages are being garnished 25% due to a collection that I have for an old car. I already filed for an exemption because I am a single parent with 4 kids. They said they would take out per pay period, but that means it will take me about 10 years to pay it off. Does anyone know if bankruptcy would cover a court ordered judgement?
Posted October 27th, 2009 in Bankruptcy Q And A. Tagged: 10 years, bankruptcy, judgement, single parent, wages.
Yes, bankruptcy will discharge a court ordered judgment. However, the new bankruptcy laws makes it harder to qualify for a complete discharge of debt (chapter 7). The new laws favor payment plans where the debtor will pay a certain percentage of their disposable income for a number of years, usually 3 to 5 for all debt which qualifies for the bankruptcy plan. You will have to contact an attorney to see whether you can qualify for Chapter 7 or 13.
October 27th, 2009 at 12:18 pmNo , Court ordered cant be filed on……..its a judgement and must be payed
October 27th, 2009 at 12:18 pmIt used to. But since the new bankruptcy laws are in effect, that may have changed. A friend of mine had a similar situation. He owed $30,000 to a commercial landlord, couldn’t pay it, and filed bankruptcy. The landlord debt was discharged by the bankruptcy. Good luck. I am not so sure that the post from hghostin is correct. You may need to consult with a bk attorney. If you don’t have the money to pay one, maybe a paralegal doing pro-bono type work.
October 27th, 2009 at 12:18 pmYes you can file and get an immediate order stopping the garnishment. The judgment has nothing to do with the underlying debt. The question is what the debt is for and, in the case of a car loan, it is an unsecured debt which can be discharged if you meet the qualifications for a ch. 7 bankruptcy. If you do not, you can still file a ch. 13 bankruptcy and the creditor will often get only pennies on the dollar.
You could also tell them you will file, and try to work out a settlement agreement.
Best of luck to you.
October 27th, 2009 at 12:18 pmYes, you can file bankruptcy on a court ordered judgement, PROVIDED that it isn’t child support. If that is your only debt, that might be a little extreme, tho.
October 27th, 2009 at 12:18 pm