Sometimes non-payment of dues like credit card debt can result in the creditor filing a civil lawsuit against you. If you don’t respond to it then, Los Angeles based bankruptcy law firm Recovery Law Group lawyers say, you could end up facing a civil judgment. If there are no heavy debts and the judgment amount is small, then you could set a payment plan to clear the debt. However, if you have many debts and the judgement amount is large, then you could consider bankruptcy as a way out.
Bankruptcy is one of the best ways to get rid of financial burden including civil judgements. However, there are some exceptions as not all judgements can be discharged through bankruptcy. Civil judgement obtained by creditors for unsecured nonpriority debts like medical bills, credit card debt, personal loan, etc. can be discharged through bankruptcy. judgements obtained for unpaid alimony, child support, taxes, criminal fines or student loans cannot be discharged in bankruptcy. Additionally, if fraudulent means were used to secure the debt or the debt is due to DUI then also you won’t be able to discharge the debt.
If the creditor has taken a civil judgement against you, there are ways to enforce it if you are unwilling to pay. These methods include wage garnishment, levying bank accounts or getting a lien on your property. The only way to stop these collection actions is to file for bankruptcy. With automatic stay in place, wage garnishment and bank account levies will stop. Though, bankruptcy cannot remove lien placed on the property; it can just help absolve your personal liability for the debt. You will need to file a separate petition in court, 1 year after getting your bankruptcy discharge to get the lien removed.
If you are facing a civil judgement and don’t have the finances to pay it, then you need to consider bankruptcy as a way out. You can call 888-297-6023 and discuss your predicament with experienced bankruptcy lawyers.