If you’re considering bankruptcy, you may have asked yourself: “Can a Judgment be Discharged in Bankruptcy?”
If you have a judgment placed against you, that means you have defaulted on a loan or other financial instrument. A judgment is a legal document of last resort; filed by the creditor against you to collect the money you owe them.
A judgment can be filed by a person or by an entity. This means if you are behind in your child support payments, both the recipient and the state in which you live can file a judgment against you.
The same is true for delinquent income tax payments. The federal government will file a judgment against you, and most likely a lien on your property as well. You can even have your paycheck garnished and your bank accounts frozen.
When someone is in this much financial trouble, the only way they are able to get some relief is to file Chapter 7 personal bankruptcy, or Chapter 13 bankruptcy, which enables a court to work out a repayment plan. Both of these bankruptcy scenarios will remain on your credit report for 10 years and appear negatively on your credit rating.
However, both back child support payments and delinquent income tax payments are not discharged in a bankruptcy plan. In other words, these items will not be removed by filing bankruptcies. The best thing you can do is to try to work out a repayment plan for whatever you owe, and be diligent in making the payments.
All judgments will remain on your credit report for a period of 7 years, and bankruptcies will remain for 10.
However you don’t just have to live with a damaged credit report. You can contact lexington law firm credit repair one of the most powerful and affordable credit repair cleaning services availiable. You can also dispute negative items yourself by writing a dispute letter to each credit bureau – however expect frustration and stall tactics from the credit bureaus.
Don’t get discouraged! No matter how you choose to clear bad credit – it can be done and without waiting seven or ten long years!
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