Thank you for your question. I am happy to assist you.
Since you signed a consent judgment and the debt is valid, the creditor can record the judgment.
However, if you are able to work out a payment plan with the creditor, she will not necessarily execute on your assets.
To avoid having the judgment entered you can consider a Chapter 7 bankruptcy. A Chapter 7 bankruptcy will typically discharge unsecured debt.
I hope that the information which I provided was helpful to you.
Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.
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THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE
Can you advise the process under chapter 7 bankruptcy, and if we will be able to keep our home and cars? Also, my husband wanted to know which would be worse for us a judgement or bankruptcy? My fear is a creditor judgement means our assets will be sought after and liquidated by the creditor, which means we have no asset protection. Is this correct?
The assets that are exempt from creditor claims in a bankruptcy are similar to those protected under the bankruptcy code. The main difference is that without a bankruptcy the judgment creditor can hold the judgment until assets are available to execute on.
Here is a link to the California exemptions:
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