Default Judgments and Bankruptcy

One can usually discharge default judgments in bankruptcy but, if at all possible, they should be avoided. Before allowing a default judgment to happen, talk to your attorney about the consequences this might have on you. So, what is a default judgment? A default judgment is a judgment that a judge can give a creditor when the debtor fails to appear and participate in the lawsuit against them. Entering an appearance in a lawsuit may prevent the default judgment from happening and also may postpone a judgment being entered against you. Why is this important? More time can help you properly prepare for filing your bankruptcy petition, if your situation warrants it. Additionally, a default judgment should be avoided because it could create some unwanted results if not properly handled. Creditors could garnish your wages, levy your bank accounts and place liens on your property. Sure, some of these consequences can be settled in a bankruptcy, but usually at the cost of the debtor’s time, money and efforts.

If you or anyone you know would like more information regarding Bankruptcy please contact me for a free consultation at : 

The Law Offices of Anca Iacob

7075 W. Bell Road, Suite 15

Glendale, AZ 85308

(623)266-0060

Please also take the time to visit my website at www.iacoblaw.com for more helpful information regarding Bankruptcy. 

Also feel free to "like" my page on Facebook and become a "follower" on my twitter page to support my business. Both can be found under The Law Offices of Anca D. Iacob, PLLC. 

*The Information provided for this blog and on my website does not constitute legal advice and should not be considered as such. For information regarding your particular situation please contact an attorney.* 

What Chapter should I file?

Today we will be talking about two different types of bankruptcy that you can choose to file. Each one fits the needs of different clients and is recommended when appropriate.

·         Chapter 7 Bankruptcy

This type of Bankruptcy may also be referred to as a “fresh start” or “liquidation”. Your debts are discharged or in other words canceled, but you may be required to surrender any non-exempt property to the trustee. However, you may keep secured property if you are current on all payment and continue making the regular monthly payments on the property.

·         Chapter 13 Bankruptcy

This Chapter is also referred to as a “reorganization” or “wage earner plan”. Chapter 13 bankruptcy allows you to keep valuable property, including your home and car, which you may be in the process of losing due to past due payments.  You are allowed to keep such property if you are in the position to make the necessary payments. Many times that will be the regular monthly payments, plus a payment that will go towards arrears. In this Chapter, you can have between three and five years to pay back the arrears. 

If you or anyone you know would like more information regarding Bankruptcy please contact me for a free consultation at : 

The Law Offices of Anca Iacob

7075 W. Bell Road, Suite 15

Glendale, AZ 85308

(623)266-0060

Please also take the time to visit my website at www.iacoblaw.com for more helpful information regarding Bankruptcy. 

Also feel free to "like" my page on Facebook and become a "follower" on my twitter page to support my business. Both can be found under The Law Offices of Anca D. Iacob, PLLC.