Can I discharge a judgment as soon as it’s entered, was the primary query the caller requested.
Do I’ve time to file chapter?
The caller was positive he needed to file chapter earlier than the court docket entered judgment or he’d be caught with the judgment perpetually.
Not so. Chapter discharges judgments.
The debt underlying a California judgment stays simply as dischargeable because it was earlier than the case was filed.
And, a judgment in California doesn’t robotically turn into a lien on the defendant’s property.
It takes one other step in California for a cash judgment to turn into a lien. And so long as there isn’t a lien, the debt is unsecured and probably dischargeable in chapter.
Discharge activates form of debt
Opposite to what some dishonest debt collectors will inform you, judgments are simply as dischargeable in chapter because the underlying debt is.
Whether or not an unsecured debt could be discharged in chapter seems at the nature of the debt, not whether or not a court docket has dominated on the deserves of the declare.
- Baby assist is non dischargeable, whether or not or not there’s a judgment.
- Money owed incurred by fraud are non dischargeable in chapter, if the creditor can show fraud to chapter requirements.
- Bank card money owed actually incurred are dischargeable, judgment or no.
Liens change every thing
What does change the dynamic is an summary of judgment or a discover of judgment lien.
These paperwork do create a lien on the judgment debtor’s belongings.
Recording an summary of judgment creates a lien on actual property within the county through which it’s filed. A discover of judgment filed with the California Secretary of State creates a judgment lien on private property positioned within the state.
If the lien can’t be prevented in chapter, the judgment creditor has obtained a bonus.
Judgments are creatures of state legislation
What my good friend Jay Fleischman’s publish about civil judgments in New York and their chapter implications factors out is the best way state legislation impacts the operation of federal chapter legislation.
The rights that every get together in a chapter case brings to the chapter case originate in state legislation.
It additionally demonstrates why attorneys are licensed in every state and why my California legislation license doesn’t entitle me to observe chapter legislation in New York.
Picture within the public area, courtesy of Wikimedia.