QUESTION
Can I declare bankruptcy only to dismiss a judgement against me?
Asked on Aug 10th, 2012 on Bankruptcy - New Jersey
More details to this question:
I recently lost an arbitration over $12,000 in alleged damages, and was shocked to be told I owed them $46000 in legal fees. The arbitration was rediculously one sided and unfair. We were not allowed to present a case or defend ourselves. We were not advised it could be this high and thought arbitration was supposed to protect from that. We have perfect credit but cannot afford this judgement and feel sick about paying it under the circumstances even if we could swing it. Could we possibly discharge that and still pay all other debts to lessen the damage to our credit?
21 ANSWERS
William C. Gosnell
Yes.
Answered on May 28th, 2013 at 10:22 PM
Dennis P. Mikko
No, a bankruptcy would include all your debts and assets. Outside of the bankruptcy you could pay other debts but it would not diminish the effect of the bankruptcy.
Answered on Aug 23rd, 2012 at 10:12 AM
Real Estate Attorney serving New Port Richey, FL
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Jay W. Moreland, P.A.
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You should talk to an attorney about your situation to see what is best for you. You have to list all of your debts when you file bankruptcy whether you intend to pay them or not. The fact that you filed bankruptcy will show up on your credit report.
If you chose to pay certain creditors, you can do that after you file your bankruptcy. A bankruptcy does not prevent you from paying anyone, it only prevent creditors from coercing payment from you.
A creditor will likely show the debt as discharged in bankruptcy whether you pay them back or not. Generally if your debts are serious enough for you to consider bankruptcy, it doesn't make economic sense to fail to take the full benefit of the bankruptcy law and come out of the bankruptcy owing additional debt.
Answered on Aug 23rd, 2012 at 10:11 AM
All your dischargeable debts will be discharged. You can pay anything you like (after you file; never, never, never before you file). Whether this is a good idea or not is something you should discuss with your bankruptcy attorney.
Answered on Aug 23rd, 2012 at 10:10 AM
Employment & Labor Attorney serving Weston, FL
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Behren Law Firm
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Yes probably. Depends upon what was the basis for the judgment against you. Feel free to contact my office if you wish to discuss further.
Answered on Aug 23rd, 2012 at 10:10 AM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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No, you must list all of your debts and deal with equally. If all unsecured they would all be discharged. You may have to file chapter 13 and pay a portion to everyone. This depends on your income.
Answered on Aug 23rd, 2012 at 10:10 AM
Daniel James Wilson
Doesn't work that way. You must list all debts. You should consult an experienced BK attorney. He or she may have some useful ideas.
Answered on Aug 23rd, 2012 at 10:09 AM
You can file for bankruptcy or not, but you cannot file bankruptcy against a particular debt. Filing a bankruptcy would include all of your assets and debts.
Some assets are except while some may not be; some debts are dischargable while others may not be.
Given your income and asset levels, a Chapter 7 may be best, or Chapter 13 may be best. All preferential payments to creditors (paying one/some creditor(s) and not others) over $600 in the last 90 days must be reported and actions taken specifically to effect certain outcomes in bankruptcy could be deemed an abuse of the bankruptcy process and cause you to be denied a discharge.
Ultimately you're in or you're out. Finally, the effect of a bankruptcy filing on your credit is not effected by the amount of the discharge, just the filing (including which Chapter was filed) and the granting of the discharge (or not.)
Answered on Aug 23rd, 2012 at 10:09 AM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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Yes you may but you really need to contact a bankruptcy attorney to be sure.
Answered on Aug 23rd, 2012 at 10:07 AM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
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Timothy Kevin Byrne Attorney at Law
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Yes you can.
Answered on Aug 23rd, 2012 at 10:07 AM
Criminal Defense Attorney serving Calabasas, CA
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Law Office of Bernal P. Ojeda
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yes but consult with an attorney first.
Answered on Aug 23rd, 2012 at 10:07 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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All debts must be listed in the bankruptcy case. You may reaffirm the other debts, but that may not be wise. It would also be wrong to think that doing so would restore your credit score.
Answered on Aug 23rd, 2012 at 10:07 AM
Judgments are dischargeable as long as not based in fraud or personal injury (see 11 U.S.C. 522(d)(523)).
Answered on Aug 23rd, 2012 at 10:06 AM
Intellectual Property Attorney serving Petaluma, CA
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Law Offices of David P. Gardner
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No. When you file a bankruptcy case you must list all of your debts. You cannot pick and choose to include only certain debts. However, although your legal obligation to repay the debts will be discharged by the bankruptcy, nothing prevents you from re-paying the debts you choose and reducing the damage to your credit score.
Answered on Aug 23rd, 2012 at 10:05 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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A bankruptcy must include all debts. You can keep secured items (house or car) by continuing to pay for them.
Answered on Aug 23rd, 2012 at 10:05 AM
Real Estate Attorney serving South Jordan, UT
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James T. Dunn P.C.
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You can file BK on all your debts and then re-affirm all but the arbitration award.
Answered on Aug 23rd, 2012 at 10:05 AM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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No. You would have to include all the debts you owe in your bankruptcy petition. Additionally, bankruptcy will adversely affect your good credit if you file.
Answered on Aug 23rd, 2012 at 10:04 AM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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You can file for bankruptcy protection whenever you owe more debts than you are able to pay for.
Answered on Aug 23rd, 2012 at 10:04 AM
Chapter 7 Bankruptcy Attorney serving San Francisco, CA
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Bertrand, Fox & Elliot
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You can file bk to take care of the amount owed under the judgment, but need to include all other debts as well.
The impact on your credit score will be the same either way. If you would like to learn more about filing bk, please feel free to let me know.
Answered on Aug 23rd, 2012 at 10:04 AM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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With few exceptions for necessities like some car loans, you cannot file bankruptcy and decide to keep some debts and not others.
If you file for bankruptcy, you would have to disclose all of your debts, and it would be up to your other creditors to decide whether or not to extend you credit again after the bankruptcy is over.
Also, you would need to consult with a bankruptcy attorney about the nature of your arbitration case to ensure it is a type of debt that can be discharged in bankruptcy.
Answered on Aug 23rd, 2012 at 10:03 AM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
You can, but you will have to declare bankruptcy totally. You can not just declare it for one debt. Also, you will run the chance of an adversary proceeding saying that it should not be discharged (depending on what was the underlying cause of the arb) If fraud, then this certainly could happen. Give a call to a Bankruptcy Attorney in your area.
Answered on Aug 21st, 2012 at 11:15 AM