Is a judgment considered a secured claim for bankruptcy purposes?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is a judgment considered a secured claim for bankruptcy purposes?
I am filing for Chapter 7. On Schedule D it asks for a list of creditors holding secured claims. There is a civil judgment entered against me for the amount owed to a creditor; however, they have not attached a lien against any of my belongings (mainly because I don’t have any).
Asked on August 5, 2011 Michigan
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Yes, it is considered a secured claim for bankruptcy purposes. I am assuming that an unsecured creditor took you to court for the debt owed (possibly a credit card?) and that they won the case (or that you possibly did not respond and a default judgement was granted?). Once an unsecured creditor sues you in court and obtains a judgement against you they go from being unsecured to secured. Secured creditors have more rights than unsecured creditors. They can garnish salary as well as attach personal and real property so you are not out of the woods yet here. If bankruptcy is the choice that you have made to help rid you of the claims then good luck to you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.