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Vacating a Judgement after bankruptcy


dadov3
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I have read conflicting answers on the site and would like to get a fresh perspective on this. I filed for CH7 in July 04 discharged Nov 04. I have two judgements on my CR one from 2000 and one from May 04. I would like to get these removed from my CRs' Do I file a Motion to Vacate with the corresponding courts granting the default judgements? If so do I list the BK as my reason? Is there anyone who could help with the wording and what I should include in this motion. I understand I should also include with the motion copies of my bk paperwork listing the OC.

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  • 3 weeks later...
  • 3 weeks later...

I have a similar situation...I had a business in my name for a few years until my EX ran it into the ground (hence the "EX" part)...when all was said and done I had $370,000.00 (yes, you read that right!) of debt so I had to file personal BK

I had 2 civil judgements (business related) against me in small claims court..

#1 filed 04/04 for $3,194

#2 filed 07/04 for $3,535

I filed Ch 7 BK 06/05, including the 2 judgements, which was discharged 09/05. The judgements are on my CR but do not indicate any reference to being included in the BK. From what I have been reading on the boards I should go to court to file a motion to vacate the judgements since they are not valid since they were included in the BK?? Would I then send that to the CRA's requesting that they be removed?

My goal is to have them removed completely from my CR rather than have them state "included in BK" if I can.

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Does this also go for judgments filed DURING the BK? I have an in rem judgment from a bank stating they filed it because I refused to relinquish the collateral. This is untrue and I have documentation to prove it.

Can I file a motion to vacate based on my BK even if the judgment was part of the BK?:confused:

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CreditClimber, ANY judgment that was filed against you DURING a bankruptcy is a violation of the automatic stay, is illegal, and completely NULL AND VOID. It NEVER should have gone thru the courts in the first place. Vacate the judgment and point out that it was illegal in the first place. Why didn't your lawyer stop that nonsense ??

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Your attorney should have filed a Suggestion of Bankruptcy in the court where the judgment was obtained. That would have put the court on notice that you filed bankruptcy and no further action could be taken on that matter unless the creditor got the stay lifted.

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Yes, I'm discovering that my attorney was rather lazy. I think a lot of attorneys feel like the BK is going to ruin your credit anyway, so why bother with anything that might help it in the future? I am also being foreclosed on by Ameriquest while in the process of working through a deed in lieu of foreclosure! They filed the foreclosure three weeks after the first letter they sent verifying the debt. The attorney on their end told my attorney that the foreclosure wouldn't affect my credit because I had already filed BK. WHAT?!!:roll: Even I know that's bull!

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LadynRed:

CreditClimber, ANY judgment that was filed against you DURING a bankruptcy is a violation of the automatic stay, is illegal, and completely NULL AND VOID. It NEVER should have gone thru the courts in the first place. Vacate the judgment and point out that it was illegal in the first place. Why didn't your lawyer stop that nonsense ??

I got to thinking about what you said regarding the judgment being in violation of the automatic stay. The bank filed a release of stay first, then filed the judgment. Does that make it anymore difficult (or impossible) to have the judgment vacated?

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What EXACTLY was the lawsuit that they asked for relief from stay to move forward with it ?

They asked for a relief from stay in order to gain access to the property they had liens on (video store inventory & a flatbed trailer.) The relief from stay was granted. Then they filed the judgment, stating that it was necessary because I was withholding the property and would not relinquish it to the bank. (This was a lie.)

Did your lawyer OBJECT to that motion for relief ?

My lawyer didn't object to diddly-squat. He just said it was all normal for bankruptcy and didn't mean anything. We never objected, responded or even appeared. Ameriquest filed for the same relief of stay to gain access to our house.

Both Ameriquest and FFB filed these motions and judgments even though I was offering the property and had been since the very beginning of my bankruptcy.

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Well, if you can prove you weren't withholding anything, then you shouldn't have a big problem getting the judgment set aside. A motion for relief is not uncommon if a mortgage is in arrears though, but you do have the option to object to their motion.

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Hello,

I also have a judgement from ASSET ACCEPTANCE LLC that is being reported on my CRs after the courts granted my motion to stay for the defendant and after reading a few replies in this thread, it is to my understanding that it should not be reported after the discharged?

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As long as the public record of the judgment exists at the courthouse, it will stay on your reports. If your bankruptcy is discharged and the debt that caused the judgment with it, then file a motion to vacate the judgment. Then dispute the judgment with the CRA's a couple of months after that.

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after investigating, TU submitted me with ITEM, DESCRIPTION, RESULTS of the ASSEST ACCEPTANCE LLC JUDGEMENT "no longer on file", however, I still see it on my files. what's next? Do I file a MOTION TO VACATE or how can I file an MOTION TO VACATE when they it's nothing there?

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  • 3 months later...

I am sooooo glad I did a search and found this thread. I found out when I did a refi, that a have a judgment that was never vacated! The mortgage broker was trying to get me to pay it. Thank goodness for cic!! I am going to cancel my closing on this mortgage until I get this done!! Thanks CIC experts.

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I just wanted to add that in some states, you don't have to file a motion in court to get judgments taken off record at the courthouse. Some states (AZ & WI come to mind), have a form that can be filled out and submitted with the bk discharge papers attached.

In Texas, the Property Code (Chapter 52) clearly states that a judgment discharged in bk is released and cancelled without any further court action. But, the courthouse does NOT have forms to submit. And convincing the people in the County Clerks office of this is like talking to the wall (in my town anyway). They are telling me that whoever issued the judgment must be the one to release it. I called the atty office that issued mine, and they said that I am not even in their system anymore. <hit brick wall>

I am closing on a mortgage refi tomorrow (Hooray!!), and it took getting the attorney for the title company to verify that the judgment had been discharged in bk before they would ok the closing.

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