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Can I Discharge Judgments in Ch 13 Bankruptcy?

  • Chapter 13 bankruptcy can often erase unsecured civil judgments, like those from credit cards or medical bills.
  • You'll follow a 3-5 year payment plan and might eliminate remaining balances, but secured judgments and priority debts usually require full payment.
  • Call The Credit Pros for a free consultation to review your credit report and craft a Chapter 13 plan to reduce your debt.
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You can often wipe out judgments in Chapter 13 bankruptcy. The type of debt decides if you can erase it. Most unsecured civil judgments from credit cards, medical bills, or personal loans will disappear.

Chapter 13 stops creditors from collecting right away. You'll make a 3-5 year payment plan and might erase leftover judgment balances when you're done. Secured judgments may need full payment or lien removal. You can't erase priority debts like taxes or child support.

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Can I Discharge Judgments In Chapter 13 Bankruptcy

Yes, you can often discharge judgments in Chapter 13 bankruptcy. The type of debt behind the judgment determines its dischargeability, not how it was obtained. You can typically eliminate most unsecured debts like credit card balances, medical bills, and personal loans. However, you can't discharge judgments from certain non-dischargeable debts such as alimony, child support, or some taxes.

When you file for Chapter 13 bankruptcy, you'll benefit from:

• An immediate stop to collection efforts and wage garnishments
• The ability to catch up on secured debts
• Potential discharge of unsecured judgments

It's important to note that judgment liens on your property may remain unless you take specific steps to avoid them. We strongly recommend that you consult a bankruptcy attorney to evaluate your unique situation. The interplay between judgments, liens, and bankruptcy discharge can be complex, and professional guidance is crucial.

You should be aware that Chapter 13 requires a 3-5 year repayment plan commitment. You'll need to meet specific eligibility requirements for income and debt limits. We advise you to consider exploring alternatives like debt settlement or Chapter 7 bankruptcy, depending on your circumstances.

Remember, while Chapter 13 can provide powerful debt relief, it's a serious financial decision. We recommend that you thoroughly assess all your debts, assets, income, and legal options before filing. This approach will empower you to make the best choice for a fresh financial start.

In short, you can discharge many judgments in Chapter 13 bankruptcy, but it's crucial that you understand the nuances and seek professional advice to navigate this complex process effectively.

Which Judgments Qualify For Discharge In Chapter 13

When you file for Chapter 13 bankruptcy, you can discharge most civil money judgments. These typically include:

• Judgments from credit card debts
• Medical bill judgments
• Personal loan judgments
• Unpaid rent judgments
• Deficiency balances after foreclosure or repossession

However, you can't discharge certain types of judgments in Chapter 13:

• Criminal fines or penalties
• Judgments for fraud
• Willful or malicious injury judgments
• Some tax debt judgments
• Child support or alimony judgments
• Student loan judgments

You should know that the underlying debt determines dischargeability, not how the judgment was obtained. If you have secured judgments tied to collateral, they may remain enforceable. Also, you can't discharge non-monetary court orders like injunctions.

When you file Chapter 13, you get a 3-5 year repayment plan to satisfy or reduce eligible judgment debts while keeping your assets. The automatic stay halts collection efforts during your case. After you complete the plan, qualifying judgments get discharged.

We strongly recommend that you consult a bankruptcy attorney. They can evaluate your specific judgments and help you develop an appropriate Chapter 13 strategy for maximum debt relief within legal limits. To finish up, remember that by taking this step, you're moving towards less financial stress and a fresh start.

How Does Chapter 13 Handle Secured Vs. Unsecured Judgment Debts

In Chapter 13 bankruptcy, secured and unsecured judgment debts are treated differently. You must prioritize secured judgments, backed by property liens, through your repayment plan to keep the associated assets. Unsecured judgments fall into general unsecured claims, potentially receiving partial payment over 3-5 years.

When you file for Chapter 13, you'll need to consider:

• Lien stripping for underwater second mortgages
• Possible interest rate reductions on secured debts
• Catching up on mortgage arrears through the plan

For secured debts in Chapter 13, you'll handle them as follows:
- You'll pay mortgage arrears through the plan while resuming regular payments to the lender
- You'll often pay car loans through the plan and may lower the amount owed with a motion to value
- You might reduce interest rates on secured debts

Unsecured debts are treated differently:
- Credit cards, medical bills, and personal loans may receive partial payment
- You may have the remaining balance potentially discharged
- Some unsecured debts like taxes and child support get priority status

We understand you're weighing debt reorganization benefits against a long-term repayment commitment. You're making a significant decision about your financial future. We're here to help you navigate these options and find the best path forward.

In essence, you'll need to prioritize secured debts in your Chapter 13 plan, while unsecured debts may receive partial payment or be discharged. We're here to support you through this complex process and help you make informed decisions about your financial future.

Will Filing Chapter 13 Stop Judgment Creditors From Collecting

When you file for Chapter 13 bankruptcy, you immediately halt most judgment creditors from collecting. The automatic stay stops wage garnishments, bank account levies, and pending lawsuits. Creditors must cease their collection efforts outside the bankruptcy process.

You'll set up a 3-5 year repayment plan under Chapter 13. During this time, judgment creditors can't pursue collection against you. You'll pay back some or all debts through the plan, often at 0% interest for unsecured creditors.

It's important to note that not all debts can be discharged. You'll still need to pay priority debts like recent taxes, child support, and alimony in full. While you may be able to restructure secured debts, you'll typically need to repay them. The underlying debt, not how the judgment was obtained, determines if it's dischargeable.

We strongly recommend that you consult a bankruptcy attorney to protect your assets and develop an effective debt relief strategy. They can help you understand how Chapter 13 will specifically impact your judgments and guide you through the process.

Key points to remember:
• The automatic stay stops most collection actions immediately
• You'll have a 3-5 year repayment plan, potentially at reduced interest
• You must still pay priority debts in full
• You may be able to restructure secured debts
• An attorney can provide personalized advice for your situation

To wrap things up, filing Chapter 13 can offer you significant protection from judgment creditors, but it's crucial that you understand the specifics of your situation. By consulting with a bankruptcy attorney, you'll be better equipped to navigate this process and find the debt relief you need.

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Let Professionals help you develop the best possible strategy to improve your credit score after bankruptcy.

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Can Chapter 13 Remove Judgment Liens From Property

Yes, Chapter 13 bankruptcy can remove judgment liens from your property through lien avoidance. You can eliminate or reduce liens that impair your homestead exemption if:

• The lien is a judicial lien from a lawsuit, not a statutory lien
• You file a motion with the bankruptcy court
• You demonstrate how the lien impairs your exemption

If successful, the court will issue an order avoiding the lien, effectively removing it from your property. Key factors you should consider include:

• Timing - you need to act promptly during your bankruptcy case
• Your property's value
• Any existing mortgages
• Your state's specific homestead exemption limits

We recommend that you seek professional legal guidance due to the complexity of bankruptcy laws. It's crucial that you follow proper procedures to secure lien avoidance. Remember to accurately identify and list all judgment liens in your bankruptcy filings.

By using Chapter 13 to remove judgment liens, you can:

• Protect your home from creditor claims
• Reduce your financial stress
• Get a fresh start financially

This powerful tool in Chapter 13 bankruptcy offers you relief if you're facing financial hardship and want to safeguard your property. On the whole, while Chapter 13 can help you remove judgment liens, it's essential that you act quickly and follow the correct legal procedures to maximize your chances of success.

What'S The Process To Discharge Judgments In Chapter 13

To discharge judgments in Chapter 13 bankruptcy, you need to follow these steps:

1. File your Chapter 13 bankruptcy petition.
2. Create a 3-5 year repayment plan.
3. Include your judgment debts in the plan.
4. Make all required payments throughout the plan period.
5. Complete a financial management course.
6. Receive the discharge order from the court.

You should know that most unsecured judgments can be discharged in Chapter 13. However, if you have secured judgments, you might need to pay them in full or strip the lien. It's important to understand that some judgments, like those for domestic support or DUIs, aren't dischargeable.

When you file for Chapter 13, you benefit from an automatic stay. This means creditors must stop their collection efforts during your bankruptcy. Once you complete your plan and receive a discharge, creditors are permanently prohibited from collecting on the discharged debts.

Here are some key points to remember:

• You can include most judgment debts in your Chapter 13 plan.
• The automatic stay protects you from creditor harassment during bankruptcy.
• You must complete all plan payments to receive a discharge.
• Not all judgments are dischargeable in Chapter 13.

Bottom line: While Chapter 13 can help you discharge many judgments, it's a complex process. We strongly recommend you consult with a bankruptcy attorney. They can review your specific judgments, help you create an effective repayment plan, and guide you through the process to maximize your debt relief.

Are There Limits On Discharging Judgments In Chapter 13

Yes, there are limits on discharging judgments in Chapter 13 bankruptcy. The type of debt behind the judgment, not how it was obtained, is the key factor. You can discharge most unsecured debts like credit cards or medical bills. However, you typically can't eliminate priority debts such as taxes, child support, and student loans. Secured debts with valid liens may remain enforceable against your property even if your personal liability is discharged.

To receive a discharge in Chapter 13, you must:
• Complete all plan payments (usually over 3-5 years)
• Fulfill requirements like finishing a financial management course
• Get court approval

Once discharged, creditors can't pursue collection on those debts from you. However, judgments based on fraud, willful injury, or certain other grounds may be non-dischargeable. The bankruptcy code provides limited exceptions in some cases.

We strongly recommend that you consult a bankruptcy attorney to assess your specific situation. They can help you maximize debt relief through Chapter 13 based on your individual circumstances. Remember, bankruptcy law is complex, so professional guidance is crucial for you to achieve the best outcome.

In a nutshell, while Chapter 13 can help you discharge many judgments, there are limitations based on the type of debt. You should seek expert advice to navigate this process effectively and ensure the best possible result for your financial situation.

How Long Does It Take To Discharge Judgments In Chapter 13

Discharging judgments in Chapter 13 bankruptcy typically takes 3-5 years. You'll need to complete your court-approved repayment plan during this time. Once you've made all payments, the discharge process begins. It usually takes you 1-3 months to receive the final discharge order after your last payment.

To get a discharge, you must:
• Finish all plan payments
• Complete required financial management courses
• Stay up-to-date on domestic support obligations
• Not have received another bankruptcy discharge recently

The discharge permanently stops creditors from collecting on discharged debts, offering you a fresh financial start after years of repayment. However, you should know that not all debts can be discharged in Chapter 13. We recommend you consult a bankruptcy attorney to understand which of your debts may qualify.

In rare cases, you might qualify for an early "hardship discharge" if unexpected circumstances prevent you from completing payments. This is uncommon but can provide relief if you face major financial setbacks during your repayment period.

We understand the process seems long, but we encourage you to stay committed to your plan. Each payment brings you closer to financial freedom. If you have questions along the way, don't hesitate to reach out to your attorney or the court for guidance. All in all, while discharging judgments in Chapter 13 takes time, you're taking steps towards a brighter financial future with each payment you make.

Professionals can help you with your Credit Score after Bankruptcy.

Let Professionals help you develop the best possible strategy to improve your credit score after bankruptcy.

Call (888) 411-1844

Can I Discharge Priority Judgment Debts In Chapter 13

You can't discharge priority judgment debts in Chapter 13 bankruptcy. These debts, like taxes or child support, must be paid in full through your repayment plan. Chapter 13 allows you to reorganize your debts over 3-5 years, but priority debts take precedence. You'll need to include these in your plan and pay them off completely.

We understand this can be challenging. Here's what you should know:

• You must pay priority debts in full through your repayment plan
• Your plan needs to cover 100% of these obligations
• You may be able to discharge other unsecured debts partially after completing the plan

If you're struggling with priority judgments, we recommend you:

• Try negotiating with creditors before filing
• Look into other bankruptcy options like Chapter 7
• Seek credit counseling to help you manage your debts

Remember, bankruptcy is complex. We strongly advise you to consult a qualified attorney. They can review your specific situation and help you explore all available options. With their help, you can create a plan that addresses your priority debts while providing relief from other obligations.

The gist of it is, you can't escape priority judgment debts in Chapter 13, but don't worry - there are ways to manage them. Talk to an attorney, and they'll help you find the best path forward.

What Happens To Non-Dischargeable Judgments In Chapter 13

In Chapter 13 bankruptcy, non-dischargeable judgments remain enforceable after the process concludes. You'll need to pay these debts in full through your 3-5 year repayment plan. They typically include:

• Fraud-related judgments
• Willful and malicious injury debts
• Certain tax obligations
• Domestic support payments
• Some government fines/penalties

While Chapter 13 allows you to reorganize your debts, you can't eliminate these specific judgments. Creditors keep their collection rights after your bankruptcy ends. This means they can still pursue:

• Wage garnishment
• Property liens
• Other collection methods

We recommend you take these steps:

1. Review all your debts with a bankruptcy lawyer
2. Identify which judgments are non-dischargeable
3. Create a realistic repayment strategy
4. Set proper expectations for your post-bankruptcy finances

Understanding how these judgments impact your case is crucial. You'll need this knowledge to develop an effective Chapter 13 plan and prepare for long-term financial stability. Remember, you're not alone in this process - we're here to help you navigate these complex financial waters and work towards a more stable future.

How Does Chapter 13 Differ From Chapter 7 For Discharging Judgments

When you're considering bankruptcy to discharge judgments, Chapter 13 and Chapter 7 offer different approaches. Chapter 7 gives you a quicker process, typically lasting about 4 months. You can wipe out qualifying judgment debts without a repayment plan. However, you must pass a means test based on your income, and you might risk losing non-exempt assets.

In contrast, Chapter 13 involves a 3-5 year repayment plan. This option allows you to keep your assets while paying off some debts over time. For judgments specifically, Chapter 13 provides you with more flexibility. You can potentially strip liens from your property and pay off judgment debts through the repayment plan rather than immediately.

You'll find Chapter 13 has advantages if you have higher income or want to protect assets that may be at risk in Chapter 7. Here are the core differences:

• Timeline: You'll complete Chapter 7 faster, while Chapter 13 takes you 3-5 years
• Asset protection: You have more control with Chapter 13
• Repayment: You don't need a plan with Chapter 7, but you do with Chapter 13

We recommend you consult a bankruptcy attorney to evaluate your eligibility and determine the most advantageous path for discharging judgments and other debts. At the end of the day, the better choice depends on your unique financial situation, so you'll want to carefully consider your options with professional guidance.

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