Ask a Lawyer - Archive
   
DIscharging a Debt Reduced to Judgment
Cathleen Cooper Moran

Q. 

If a judgment has been obtained by one of your creditors, can you still discharge the debt in bankruptcy?

-- Shelley

A. 

The dischargeability of a judgment is just the same as the dischargeability of the claim that the judgment is based on. A judgment for a credit card debt can be discharged to the same extent as the creditor's claim before judgment.

Some kinds of debts are simply not dischargeable. Support is the most familiar example. Recent taxes are another.

If a lien is perfected in the debtor's assets based on the judgment, the lien is not invalidated by the bankruptcy discharge. The lien may be avoided, however, if it is a preference or if it impairs an exemption. An experienced bankruptcy lawyer can walk you through this thicket.



-- Cathleen Cooper Moran

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