Filing Ch 7 ONLY to remove a Judgment

[itgirl11]

I am considering filing Ch 7 (I have already spoken to a bankruptcy atty and taken the means test to qualify). I have less than $5,000 total in other unsecured debts that would be discharged - medical bills, etc. and less than $2000 in credit card debt. The judgment was a default judgment that was obtained by a shady atty who said he would "help" me with my divorce and child custody proceedings. Long story short, he obtained a default judgment for almost $20,000 after all the fees. I don't believe he and the collections attorneys have any interest in settling with me as they went to alot of trouble to obtain this judgment. So, my question is, do I file Ch 7 in order to discharge this judgment? Regardless, I'm going to have to pay somebody a couple grand. My credit scores now are right under 600 and I have been working really hard on them the last couple of years. Most of the "bad marks" on my credit are old late payments (like 2005) and a couple small things that went to collection that I have worked on getting removed. I am afraid if I try to just live with this Judgment that I'll have to keep my money out of the bank as they can freeze your accounts if they find them. I don't use credit cards now, but would like to have one at least for travel purposes, renting a car, etc. Any advice as to the ramifications of either the Judgment or a Ch 7 would be greatly appreciated.

[Anonymous]

Im sorry to hear all this...Im going through the same thing with a foreclosure, and I am in the process of filing Ch 7.  I heard that they have 20 years to come after you for the money.  And I dont think you want to look over your sholder for that long.  A  bk while knock you down to the 400-500 mark, but youll have cc companies sending you offers within 2 months.  As much is sucks to file...it is a fresh start and some ppl say there credit is before the second time around...
Good Luck!!

[QueenBean]

Do you have $$ in hand?  If so, I would appeal to the man's greed.  $2000 now should be WAY more attractive to him than having to file BK claim forms and then have to write if off in the end.  It's worth a try.

[itgirl11]

Thanks for the replies. I don't think the attorney would consider a settlement of $2000-$3000 because he hired a collections attorney and that attorney has fees to pay and they have already spent a lot of time in court getting the case re-opened, etc. He went to a lot of trouble to get this judgment and even if he got a couple of thousand from me, he could still hold out for the rest from my ex-husband who is also named.I am most concerned how this unpaid judgment will affected my credit scores.

[Anonymous]

If there is a judgement against you and your husband, it is possible to make a settlement for your personal liability and get a release.  They may accept the amount you spoke of, then go after your husband for additional amounts.  They might not accept this arrangement, but I have seen creditors especially after a divorce accept a settlement amount to release one spouse while pursing the proportionate amount against the other.