Collecting on Judgement 6 Yrs after Bankruptcy

[wbb333]

I have an awarded judgment in Ohio from a builder that declared bankruptcy about 6 years ago. They declared bankruptcy before I was able to receive any money. My lawyer at the time said he motioned for something that would allow me up to 10 years to try and collect my judgment from the builder. My lawyer has since died.

Before I talk with another lawyer, I would like to know if this makes sense and specifically what my first lawyer did to allow me to collect a judgment after someone declares bankruptcy.

 

[JETX]

"I would like to know if this makes sense and specifically what my first lawyer did to allow me to collect a judgment after someone declares bankruptcy."
*** It is possible that he filed a motion to exclude the judgment from the bankruptcy discharge (there are some specific types of debts/judgments that can be excluded). Whether the court granted the motion or not would be in the bankruptcy court records.
If the judgment was not exempted, it would be DOA if it was included in the debtors filing (creditor matrix).

 

[Rainaraines]

It's my experience that with judgments, you still have a lien (some states they are automatic) against the business (or person, but business in your case) after bankruptcy. Now, like JETX said, if the atty filed a motion to exclude the judgment, they everything is fine; if not, then you are not allowed to contact them in regards to the money owed, but if they decide to sell the business, or do something that would require a release of your lien, you don't have to do so until it is paid. Some might not think this is fair, but I do it every day and the courts allow it... And, yes, I have done so in Ohio.

 

[JETX]

It's my experience that with judgments, you still have a lien (some states they are automatic) against the business (or person, but business in your case) after bankruptcy. Now, like JETX said, if the atty filed a motion to exclude the judgment, they everything is fine; if not, then you are not allowed to contact them in regards to the money owed, but if they decide to sell the business, or do something that would require a release of your lien, you don't have to do so until it is paid. Some might not think this is fair, but I do it every day and the courts allow it... And, yes, I have done so in Ohio.

If I understand your post (confusing), it is NOT correct.

If a judgment is discharged in bankruptcy, the judgment lien dies with it. The debtor can simply motion the court to set aside the judgment (as it was discharged) and then demand that the creditor file a 'Release of Lien'. If the creditor refuses, the debtor can file a defamation (of title) judgment against the creditor and get a court order releasing the lien.... and recover costs and attorney fees. If you have been able to collect on these discharged judgments as you claim, the debtor is ignorant of his rights and/or his attorney is incompetent. Further, by trying to collect on a discharged debt, you could face contempt of court proceedings..... definitely NOT something you should be chancing.

 

[Rainaraines]

You are correct, JETX. However, some creditors have a tendency to be shady (I'm not excluding my company here...), and if the correct procedures are not followed to get the judgment lien discharged, as it looks here, then the debtor screwed himself... A lien can be sat on (no calls or letters) until the debtor wants something, i.e. buying/selling houses. Once that happens, the lien will show up in most cases through a title search and the creditor holding the jmt will be contacted. They are not required to release this lien (under the above circumstances); in fact, they can demand payment in order to do so. It is not fair, I agree, but it has been done and will continue to be done in the same fashion. It is a risk for the creditor, but we have yet to be sued over it and beaten. Wbb333, this may not be a risk you are willing to take. I wouldn't blame you a bit for not taking my advice. I just want to let other readers know that there are darker sides to bankruptcies... I would definitely find out what your attorney did for you and get a local counsel's opinion.

 

[JETX]

If you (or your 'company') have done as you claim, you are skating on VERY thin ice. Simply, what you are doing is in violation of the US Bankruptcy Code.

11 USC § 524. Effect of discharge.
(a) A discharge in a case under this title -
(1) voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged under section 727, 944, 1141, 1228, or 1328 of this title, whether or not discharge of such debt is waived;

(2) operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived; and

(3) operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect or recover from, or offset against, property of the debtor of the kind specified in section 541(a)(2) of this title that is acquired after the commencement of the case, on account of any allowable community claim, except a community claim that is excepted from discharge under section 523, 1228(a)(1), or 1328(a)(1) of this title, or that would be so excepted, determined in accordance with the provisions of sections 523(c) or 523(d) of this title, in a case concerning the debtor's spouse commenced on the date of the filing of the petition in the case concerning the debtor, whether or not discharge of the debt based on such community claim is waived."

Simply, your demand for payment that was included in the bankruptcy, even to clear a lien pursuant to an included judgment, makes you (and company) in contempt of federal court. The fact that you have not been caught (YET), does not make such conduct allowed.... or appropriate.

 

[Rainaraines]

Never said I agreed with my company. I just work here. But, it seems you are correct, so I have nothing left to say in the matter.