QUESTION
If I file for bankruptcy, will that protect me from further activity from the collection agency?
Asked on Oct 09th, 2015 on Bankruptcy - New York
More details to this question:
I have a judgment filed March 2011 for a broken lease which will expire next year. In addition to the judgment being filed, the creditor sent the account to collections. Today, I received a call from the collection agency advising two things: 1 - the original amount of the debt was reported in error, and they want me to pay the corrected amount. 2 - If I don't pay them within a week, they're reporting the increased amount and they are going to renew the judgment. Do they still have the right to renew the judgment if I file for bankruptcy?
12 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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No.
Answered on Nov 20th, 2015 at 4:32 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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A bankruptcy should fully protect you from these collectors. But do find a skilled BR lawyer to advise and represent you. It's almost always worth th ed investment t. Good Luck.
Answered on Oct 20th, 2015 at 3:18 AM
I cannot give you a blanket assurance that the judgment will not be renewed if you file bankruptcy. If you file bankruptcy before a judgment is renewed, any action to do this would be what is called a STAY VIOLATION and the creditor can be punished, if the creditor knew about the bankruptcy in time. But frankly, a judgment lasts much longer than the time between March 2011 and now, so I suspect you have either your facts or the law confused. So clearly, you should be meeting with an experienced bankruptcy attorney to make sure your case is resolved smoothly.
Answered on Oct 19th, 2015 at 3:22 PM
No, BK wipes it out.
Answered on Oct 19th, 2015 at 3:21 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes.
Answered on Oct 19th, 2015 at 3:20 PM
2 Awards
If you file bk the judgment cannot be renewed or collected.
Answered on Oct 19th, 2015 at 3:13 PM
A bankruptcy filing would stop the enforcement or renewal of the judgment.
Answered on Oct 19th, 2015 at 3:12 PM
Derek W. Freeman
Filing a bankruptcy will put a stop to all attempts to collect a debt by a creditor. This includes initiating or continuing any legal proceeding. From the information you provided, it would seem that filing a bankruptcy case will stop this collection agency from renewing its judgment for this increased amount. But more importantly, bankruptcy can discharge the debt. You should talk with a local bankruptcy attorney about your situation.
Answered on Oct 19th, 2015 at 3:12 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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They can't renew the judgment if you file bankruptcy. That would be considered harassment and they could be found in contempt by the bankruptcy court.
Answered on Oct 19th, 2015 at 10:05 AM
Yes as soon as you file they can not collect any more.
Answered on Oct 19th, 2015 at 10:05 AM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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First, if you received a judgment in 2011 it doesn't expire for ten years or 2021. Second, yes if you file bankruptcy, the creditor will not be able to continue collection activity and will not be able to renew the judgment. However, if the judgment created a lien on real property, the bankruptcy will not avoid the lien automatically - you and your atty will need to file an additional motion to provide for same.
Answered on Oct 19th, 2015 at 10:05 AM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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Filing for protection under the Bankruptcy Code allows for an automatic stay to go into effect, whereby creditors are stayed from continuing collection efforts against a debtor. So the easy answer is yes, filing will stop the collection agency from harassing you or taking further action, and if discharged, will discharge the debt, make sure if there is a lien filed as a result of the judgment that you request your bankruptcy attorney to have the lien avoided while your case is active.
Answered on Oct 19th, 2015 at 10:05 AM