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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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We signed a default judgement that will be filed in court January

Resolved Question:

We signed a default judgement that will be filed in court January 1, 2009. We have asked the creditor to consider payment arragements, since we don't have the full $40K payment (due to loss in stocks and income), and she's not responded (private party). How do we prevent the default judgement from being entered Janaury 1, 2009.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.

Hello,


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.


Thank you,
Customer/span>



THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

Customer: replied 8 years ago.

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?

Expert:  Ellen replied 8 years ago.

Hello,


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:

http://www.bankruptcyinformation.com/CA_exemp.htm


To file a bankruptcy it is best to use an attorney. It is a complex procedure. Give Legal Aid a try. They can represent you at little or no cost.


I hope that the information which I provided was helpful to you.


Please click accept so that I may be paid for my work thus far..


Thank you,
Customer/span>



THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

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