Bankruptcy Alphabet: J is for Judgement Debtor
January 20th, 2012
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Judgment debtor is a term of art referring a party against whom a creditor obtained a judgment. I frequently get questions about lawsuits and judgments. Common questions includes:
- What happens if I ignore a lawsuit?
- Can I file for bankruptcy before or after judgment?
- Can I discharge a debt even after judgment has been entered?
- If there is a judgment, can they take my house?
Here is my general short answer.
The longer you wait, the more difficult it will be to fix your problems and the fewer your options will be.
How does the creditor get a Judgment?
First, let’s start with a basic scenario.
You owe Discover $15,000. You fall behind and at some point, Discover (or a debt collector) brings a lawsuit against you. A lawsuit is initiated by filing a summons and complaint with the county court. Y