Timing and Chapter 13.

[Ned505]

I believe that a local CA who collects for the local OC is getting ready to refer the matter to an atty.  The debt is mine and I cannot PIF.  It is within SOL.  About 12K.  I have no house, sold it and I rent.  Vehicle is paid for. 

I have been reticent to file as a BK will hang around for long time.  If the OC/CA move with a suit, is that the time to file ?

Can one file after the atty. becomes involved?

What effect does a BK have on a judgement that would already exist?

Thank You. 

It's hard to work when all this doubt is swirling around. 

[Anonymous]

"Can one file after the atty. becomes involved?"

YES

"What effect does a BK have on a judgement that would already exist?"

I think that would depend on what "theory" the judgment was based on.

[Anonymous]

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@Anonymous wrote:

"Can one file after the atty. becomes involved?"

YES

"What effect does a BK have on a judgement that would already exist?"

I think that would depend on what "theory" the judgment was based on.

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If the judgement is included in bk, then it is discharged.  This is what forced me into bk in 1998.  I had signed personally for some things to help a friend get his business underway.  2 years later I was sued and judgement taken against me.  They began the process of going for garnished wages, looking for assets, etc.

The amounts were large enough that I filed.....all discharged.  The judgement doesn't go away nor does the derog accounts, they show IIB, but the debt went away and almost 12 long years later I am where I am now.

[Anonymous]

"If the judgement is included in bk, then it is not discharged."

Is that a "hard" rule? My understanding is fraud is generally not dischargable for example. I had a mechanics lien foreclosure against me for 3 years and on the day before trial was supposed to begin I decided to settle. The reason was we had a excelllent fraud case against them but even if I won the lawsuit(which I would have) it would require me to try and collect. They could have filed bankruptcy then and I would have had to file an adversary case against them. All the sudden 3 years could have turned into 6 years.

[Anonymous]

If the judgement is included in bk, then it is discharged"

I added a "not" by mistake to your quote...sorry for the confusion.

[Anonymous]

BK in any form is a discharge of legal debt, not of criminal liability.

If somebody has a potential claim against you, you can list them in BK even though they have not yet sued and this will discharge any future civil claim.  If a criminal law was violated, that is a different thing all together.  Criminal liability is not discharged, nor is any fine or penalty that may be applied as criminal punishment.

Therefore, if you are considering BK, then by all means include anyone and everyone that you have a debt with, a liability with or a potential liability that they may sue you for in the future.

Disclaimer:  this is not legal advice but general information and I highly advise anyone in a BK situation to seek compentant counsel for advise.