Impact Of A Bankruptcy On A Default Judgment
The meeting of bankruptcy and default judgments can drastically change your financial standing. When facing a default judgment, the decision to file for bankruptcy may provide a way to relief, potentially eliminating or modifying the judgment. However, the impact of bankruptcy on such judgments is slight, depending on the nature of the debt and the bankruptcy filing’s specifics. Hence, having a good understanding how bankruptcy affects default judgments is crucial for anyone seeking to go through financial recovery and achieve debt relief.
Can Bankruptcy Wipe Out a Default Judgment?
Filing for bankruptcy can be a strong tool to address a default judgment, a court order requiring a debtor to pay a specific amount to a creditor. When you file bankruptcy, certain debts, including some default judgments, may be discharged, meaning they are eliminated, and you are no longer legally required to pay them.
However, it’s important that you understand that not all default judgments are dischargeable. For instance, judgments related to fraud or malicious injury may remain. Consulting a bankruptcy attorney can help determine if your specific default judgment can be wiped out through bankruptcy. At The Pope Firm, we offer quality help for your bankruptcy concerns and problems! Get in touch and find out more.
