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If you win a small claims court case and the defendent is ordered to pay the plantiff a certain amount, is there a way that the defendent can get out of repaying the money by filing bankrupcy? I'm bringing someone to court and fear that they will try and get out of repayment. Also, is it possible to ask the judge to garnish his wages?? Please let me know if you have any information on this.
Thank you
Hello jamjwu,
When a person files a bankruptcy and they have a creditor who has obtained a judgment against them, the debt underlying the judgment is discharged through the bankruptcy. However, the judgment itself will remain. No creditor can collect upon the judgment, but the judgment will still continue to exist on the county record. The judgment will still be reported to credit bureaus as unreleased. In addition, if a person were to attempt to sell an asset such as a home, the judgment will interfere with the sale of the property. Oftentimes, a title company will refuse to clear the title for a home when the owner has a judgment against them.
cannot get away free without clearing the debt
Hi jamjwu,
Do not worry. No debtor can get away without paying the debt entirely. If the debtor is planning to file a bankruptcy under chapter 7 then he will have to sell the assets and pay the debts. If he is filing bankruptcy under chapter 13 then he will have to pay the debts under the supervision of the court with an alternative payment plan in a stipulated time period. I believe this has answered your question. I do not think that you need to ask the judge to garnish his wags after this.
All the Best :)
Sarah