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The verdict given by a judge at the end of a trial is included in a civil judgment. Anything other than a criminal lawsuit is considered to be a civil lawsuit. Such judgments might give rise to many questions that are asked to lawyers online. This article provides answers to some of the most commonly asked questions about such issues. When a person with a civil judgment accrues interest annually does he/she have the right to claim bankruptcy and include this judgment?
If the person is eligible for Chapter 7 Bankruptcy then all debts and judgments can be added, except for certain taxes, student loans, criminal fines or fraudulent civil actions. Does bankruptcy erase a civil judgment?
Usually a bankruptcy erases most civil judgments. A person’s entire financial picture has to be taken into account to decide if a bankruptcy or a civil judgment will be less damaging for his/her credit. In case the person has a lot of outstanding debt a bankruptcy would be a better option since it will exempt most of the debt for the person. It is better to take consult an expert to assess the individual situation of the case and act according to the advice. When a person loses a civil case and the judgment is passed against the person, the person needs to make payments as per the ruling. If the company that the person owes money to is now out of business, how can the person fulfill the court judgment?
In a complex case such as this, seeking legal counsel is often the best course of action. If the company that a person owes payments to no longer exists, then the legal counsel would be in a better position to advice about who is now deemed to be the legal purchaser of the assets and to whom the payments should be made. Can a person with a civil judgment seeking retirement file the judgment under Chapter 7 or 13 when there is no income or assets?
The person with no assets and close to retirement would be judgment proof, i.e., the law firm would not be able to collect from that person. The retirement income is not liable to payment. In case of a bankruptcy, when the person is bereft of any disposable income he/she cannot file for Chapter 13 bankruptcy since that would require disposable income to fund the Chapter 13 plan. In the case of Chapter 7 loans are not dischargeable unless the person files for adversary complaint. The court has to determine the discharge ability of the debt due to extreme adversity and has to rule in their favor. It is important that individuals have the right information regarding civil judgments so that they can cope with difficult situations and make the correct decisions in the event of a bankruptcy. Since every case is different and bankruptcy laws are rather difficult for the common person to understand it is advisable to ask a bankruptcy lawyer to provide legal insight about the best course of action.
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