How is a deficiency judgment discharged in bankruptcy?

How is a deficiency judgment discharged in bankruptcy?

Unless your lender has placed additional liens on your other assets after obtaining the deficiency judgment, the judgment is no different than any of your other general unsecured debts (such as credit card debt or medical bills). Your bankruptcy discharge will wipe out your obligation to pay back the deficiency judgment.

What are the types of nondischargeable judgments in bankruptcy?

Some of the most common types of nondischargeable judgments include those related to or arising out of: death or injury caused by debtor’s drunk driving. When you receive a bankruptcy discharge, it wipes out your personal liability for all discharged debts.

Can a lawsuit be discharged when you file bankruptcy?

In general, filing for bankruptcy relief will discharge most of your debts including lawsuit judgments.

Can a judgment be garnished if you file bankruptcy?

If your lender obtains a judgment, it can garnish your wages or go after your personal assets to satisfy the outstanding judgment. Fortunately, filing for bankruptcy can stop the garnishment and wipe out your obligation to pay back discharged debts. If a lawsuit is still pending, the bankruptcy’s automatic stay will stop it from moving forward.

Can a judgment be vacated in a bankruptcy?

Judgments are court orders to pay unpaid debt issued in response to creditor litigation. They can often, but not always, be vacated through bankruptcy.

Can a judgment be removed from a bankruptcy?

There is a way, however, that you can get rid of the judgment lien in your bankruptcy. It is called lien avoidance. Provided that you did not give the creditor a consent judgment, you might be able to remove that lien from your home, car, and any other asset that you could otherwise exempt in your Chapter 7 bankruptcy.

Can a Bankruptcy Court revoke a discharge order?

In chapter 11, 12, and 13 cases, if confirmation of a plan or the discharge is obtained through fraud, the court can revoke the order of confirmation or discharge. May the debtor pay a discharged debt after the bankruptcy case has been concluded? A debtor who has received a discharge may voluntarily repay any discharged debt.

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