Bankruptcy and Judgments

[flsunflwrgrl]

What is the name of your state? FL
A judgment was filed against me on May 19th of 2003. I had filed for Chapter 7 bankruptcy two days before that. I later received papers that a Final Judgment was entered against me on June 3, 2003 even though this creditor was included in my Chapter 7 bankruptcy. I was thinking of entering a Motion to Set Aside Default Judgment because this creditor was included in my bankruptcy and they had previously been informed of such. Am I able to do this? My credit report states that these items will be removed in 2007 and 2008, however the judgment can remain on my credit report until 2010. I don't see how they could file a judgment when I had already filed Chapter 7 bankruptcy. I was under the assumption that since I had filed for bankruptcy, a creditor could not enter a judgment or harass me for payment. This creditor has never contacted me in any way, but this judgment is most likely reflected on my credit which I am trying to rebuild.What is the name of your state?

[smorr]

Sounds like you're doing this on your own. You're brave! It's possible the judgment was entered automatically by the court because the attorney for the creditor didn't take the time to notify the court otherwise. However, the judgment may have been initially filed by the creditor before they received notice you filed for bankruptcy. Since they're supposed to stop all attempts on the account once you do that, it's a good guess they put it on the back burner and forgot to call the court (or write). Since you'll most likely have to prove you filed before the creditor did, I'd go on ahead and file the motion to set aside default. The court should grant it, provided you have proof of those dates. It'll be a fight, but you should be okay. As for your credit report, you may also have to send them the documents proving that the judgment should be removed (if it shows up). It will take some time and effort on your part, but if you're diligent about it, by law they should remove it. Also, credit accounts that were discharged (when you do get discharged) show up on your credit reports as "discharged in bankruptcy". These items will most likely be removed from your credit report on the years you mentioned (2007/2008), but the bankruptcy will show on your report between 7 to 10 years from the date of discharge (not the date you filed). Also, unpaid judgments can appear on your report for up to 20 years! So if it shows up on your credit report, make sure you do whatever you can to prove it was discharged before the initial judgment was even filed!! Oh... also.. keep all your paperwork and keep a paper trail going for proof of everything you did. It will only help you in the end!

[flsunflwrgrl]

Thank you very much for your response. I do have all my paperwork and can prove that my bankruptcy was filed 2 days before the Notice of Filing was initiated. The actual Final Judgment is dated June 3, 2003 and I filed bankruptcy on May 17, 2003, and I have copies of both documents. I actually work at a law school, so I will probably get assistance from one of the professors, but I like to do a little research to see if it was feasible for me to file the motion to set aside default judgment and if it would be worth my while to do so before asking for assistance. I am trying really hard to reestablish my credit, and I do understand why the judgment was filed against me, but I made my intentions known at the mediation that I would be filing Chapter 7. I do think it is irresponsible to not keep individual debt under control, but I had no choice in the matter. Anyway thank you very much for your response. Incidentally I did attempt to contact the attorney who handled my bankruptcy, but he did not get back with me. Since I have proof of my dates, I figured I would go it alone.

[smorr]

Well, you have an advantage working in a law school and the professors will certainly be of some help. I work in a law office, so it was an advantage for me when I filed. And don't be too hard on yourself. I've found many people have gotten themselves in too deep for whatever reason - I obviously was one of them. We can only be thankful there is a way out... it's not an easy way, but it's certainly a wake up call. Was for me!

[azatty]

I simply send a letter to the creditor's attorney informing him/her that a bankruptcy was filed before the judgment was entered, assuring him/her that I believe that his/her steps in obtaining the judgment were taken in ignorance of the bankruptcy, so I won't be filing a contempt proceeding, and politely requesting that s/he voluntarily request that the court vacate the judgment within 20 days.

Of course, I then state that if s/he does not take the action within the time requested, I'll view it as a willful violation of the automatic stay and/or discharge injunction and take appropriate action to vacate the judgment and seek my fees for doing so. If there's a lawyer involved, it works every time.

If it's just a creditor acting alone, I file the motion. If it's an idiot creditor who's being obstinate, I start a contempt proceeding in the bankruptcy court and seek sanctions.

[flsunflwrgrl]

Update regarding judgment entered after filing of Chapter 7. I sent a letter supplying documentation of the filing of Chapter 7 before the Final Judgment was entered against me. I received a response right away with a signed Motion to Vacate Judgment. I was very pleased that this happened in such a timely matter. I would like to thank those who responded to my inquiry and offered suggestions on how to handle this situation. I will also mention that I intend on checking with all 3 major credit bureaus in 30 days and if the judgment is not removed from my credit reports, I will send a copy of the Notice to Vacate Judgment along with a letter sent via registered mail to remove the judgment from my credit report. Thanks again!!

[Goodfella]

Originally Posted by smorr

...but the bankruptcy will show on your report between 7 to 10 years from the date of discharge (not the date you filed)...

I thought bankruptcy was reported 7 - 10 years from date of FILING. Not day of discharge.

[toughluck73]

Originally Posted by Goodfella

I thought bankruptcy was reported 7 - 10 years from date of FILING. Not day of discharge.

Yeah, it is the date of filing.