Examining Bankruptcy’s Ability to Erase Judgments
Does bankruptcy clear a judgment in Milwaukee, Wisconsin? This is just one of the many questions our law firm receives from a lot of people. Other than asking whether you are eligible for bankruptcy, you also have to know what will be the effects of bankruptcy in judgments.
Short Summary
- Judgments often come from legal actions about debt repayment. They can cause problems like wage garnishment or seizing your property if you don’t deal with them.
- Bankruptcy can wipe away the debt connected to a judgment. However, the judgment stays on records and affects credit scores and money matters.
- Clearing a judgment requires understanding the dischargeable debts through bankruptcy and the implications on assets and financial obligations.
- Understanding Wisconsin’s exemption laws, filing procedures, associated costs, and the necessity of legal assistance are crucial steps in navigating bankruptcy effectively.
- Bankruptcy offers relief from various debts, but not all obligations can be discharged, necessitating careful consideration before filing.
- Despite the complexity and costs associated with bankruptcy, it can provide a pathway to financial recovery and a fresh start for individuals burdened by debt.
What Is A Judgment?
If you owe money to someone and can’t pay, they might take legal action against you, like going to court, to get their money back. They’ll typically file a lawsuit either in conciliation court or district court. Once the legal process starts, you’ll get a Summons and Complaint.
If you don’t respond or go to the court hearing, the court might decide against you without hearing your side. This is called a default judgment. Then, the creditor can use this judgment to take money directly from your paycheck or bank account.
To stop these actions, you’ll need to either pay off the judgment or file for bankruptcy. But even after doing this, the judgment could still cause financial problems for you. To avoid these problems, you’ll need to get the judgment released or removed.
Should I Clear My Judgment?
When an individual declares bankruptcy and possesses a creditor holding a judgment, the debt associated with the judgment is absolved as part of the bankruptcy process. Nevertheless, the judgment itself endures.
While creditors cannot enforce the judgment, it persists in county records. It will be reported to credit agencies as unsettled. If an individual seeks to sell an asset like a house, the judgment can make the transaction harder.
Does Bankruptcy Clear A Judgment?
The short answer is yes. The majority of individuals opt for bankruptcy to eliminate their debts. Nonetheless, bankruptcy does not absolve all debts. Debts eligible for discharge comprise:
- Outstanding balances on credit cards, medical expenses, and legal judgments are all included: Even if you have a judgment against you, you can still file for bankruptcy. In Wisconsin, a special law allows you to completely eliminate a judgment if bankruptcy can erase the debt.
- Certain types of taxes: Surprisingly, some tax obligations can be discharged through bankruptcy. However, the laws concerning tax discharge are intricate. If you’re dealing with tax debt, it’s advisable to seek guidance from a lawyer who can assess your specific circumstances.
- Certain debts from divorce proceedings: Under Chapter 13 bankruptcy, there’s a structured repayment plan. You can eliminate non-support-related debts resulting from divorce through this process.
- Loans from entities like the Small Business Administration (SBA) and other governmental sources: BBankruptcy can wipe out loans from the SBA and other government bodies. However, student loans have different rules and may not be discharged. But bankruptcy might not get rid of a mortgage or other liens. So, the government can still sell the property to pay off the debt.
Will Filing for Bankruptcy in Wisconsin Erase My Debts in Milwaukee, Wisconsin?
Bankruptcy helps get rid of many expenses like credit card bills, overdue bills, medical costs, and personal loans. You can even get rid of a mortgage or car loan if you’re willing to give up the property you used as collateral.
However, not all debts can be discharged. It’s important to make sure that bankruptcy will cancel enough bills to make it worth it. Some debts, like overdue support payments and recent taxes, won’t go away even after bankruptcy.
It’s hard to cancel student loans in bankruptcy. Usually, you need to go through another legal process. But there are some new forms to help make it easier.
File Bankruptcy Now!
Since bankruptcy is intrinsically complex for every average individual, that’s entirely normal. If you need legal assistance, don’t hesitate to get in touch with an experienced bankruptcy attorney.
At Miller & Miller Law, LLC, we have the experience and know-how to guide you through the tricky bankruptcy process. Plus, we use the latest technology to make things simpler for you. We ensure that we tailor our legal service based on your specific needs. By providing outstanding legal representation, we are proud to serve all of Wisconsin.
Other than bankruptcy, we can also help you with holistic recovery after getting injured, immigration problems, torts and civil litigation, and much more! Let’s work together! Get a free case evaluation today.
