Legal Question in Bankruptcy in Washington

sued for debt - bankruptcy?

Wife and I have about 20k debt altogether. Getting sued by collection agency for 4k. Should I wait until judgment at court or go bankrupt now? Will bankruptcy remove judgment? Thanks.

Asked on 9/15/08, 5:30 pm

1 Answer from Attorneys

Thomas K. Atwood Thomas K. Atwood, Attorney at Law

Re: sued for debt - bankruptcy?

Generally, it is advisable to file your petition for bankruptcy prior to judgment in the state court action, although there are factors to consider. If you have real estate, a judgment creditor may be able to affix a lien to your property, which may or may not be able to be removed in the bankruptcy, depending on the exemptions available to you and the equity that you have in the real estate. Filing bankruptcy generally freezes the state court action and prevents judgment from being entered. However, if the creditor has obtained their judgment and there is no lien, and the debt is otherwise dischargeable, then the judgment will essentially be erased by your bankruptcy discharge.

There may also be reasons why you should wait to file - please contact a qualified bankruptcy attorney for a consult regarding your options.

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Answered on 9/20/08, 3:40 pm

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