February 03, 2021
SoloSuit can keep you from having to break open the piggy bank!
Summary: Should you file for bankruptcy before or after you receive a judgment? Filing at the wrong moment can cost you time and money! Read more to find out when to file for bankruptcy. Protect your assets by responding to debt collectors with SoloSuit!
When you have a judgment brought against you on a debt, it's never too late to file bankruptcy. But there can be consequences if you wait to file bankruptcy after you receive a judgment. Seek advice from a qualified attorney if you consider bankruptcy. Do this sooner rather than later to avoid limiting your options.
Filing for bankruptcy isn't always the best option for everyone. But if you do decide to file for bankruptcy, you should file before a judgment rather than after!
If you file a petition for bankruptcy before a judgment is issued, the automatic stay will stop the lawsuit immediately. And you will avoid destroying your credit score further. It's the best way to deal with a judgment if you plan to file bankruptcy. This is important because once a judgment is filed, it becomes a lien. Filing bankruptcy can discharge the debt. But it will not get rid of the lien.
To get rid of the judgment lien, you must put in a petition to the court to cancel it. If you have a bankruptcy attorney, they will do this for you. Your petition can be denied by the court, so if you plan to file bankruptcy, then it is better to do so as soon as possible.
Creditors typically work quickly to collect on a judgment. By waiting to file you may lose income by wage garnishment or lose assets by seizure.
Filing bankruptcy can also allow you to get money back that was seized through wage garnishment. You may not be able to recover all of these funds. But it is better than nothing at all.
Some judgments are not dischargeable in bankruptcy, meaning your judgment will not be erased if you file bankruptcy. Non-dischargeable debts might include:
If you file bankruptcy and owe on a non-dischargeable judgment, you will still be liable for this debt after the bankruptcy case closes. The only exception is if they are paid in full through a Chapter 13 plan.
The best way to deal with filing bankruptcy regarding a judgment is to do so before it occurs. Although bankruptcy is not always the best way to go, sometimes it is necessary. The faster you act on your bankruptcy, the sooner it will be resolved.
It is important to evaluate your situation and seek legal counsel for the assessment of your specific case. Remember that the worst thing you can do is to ignore the situation. You must respond promptly and take action to avoid escalation.
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
Here's a list of guides for other states.
Being sued by a different debt collector? We're making guides on how to beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.