soyelmismotony

thinking about bankrupcy

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:confused:

got injured on accident. not at foult. accident lawyer do not want us to file for bankrupcy due to his case is pending with insurance.?. mean while got tons of bills pilled up one creditor sue us and got judgment. even we being able to pay this creditor sofar he wants 6k money by next month we do not have that amount. thinking to file for bankrupcy in ca

Edited by soyelmismotony
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I am not sure how things work in California, but if you already have a judgement against you, a bankruptcy will not wipe that out, it WILL remain. Also, Judgements are renewable, and their validity can last 10 years or so each time...

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BK is federal when it comes to debts and it will wipe out any judgement that is entered against you unless it can be proved that you were negligent (a very high bar to jump in an accident case unless you were charged with a DUI or proven to be driving in a reckless or negligent manner, not simply making a mistake).

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BK is federal when it comes to debts and it will wipe out any judgement that is entered against you unless it can be proved that you were negligent (a very high bar to jump in an accident case unless you were charged with a DUI or proven to be driving in a reckless or negligent manner, not simply making a mistake).

Correct. Judgments are dischareable.

The reason the lawyer handling your lawsuit doesn't want you to file, any pending litagition will become property of your bk estate and the trustee will take control of any settlement.

However, Ca. has some very generous bk exemptions. Most bk lawyers give free or lowcost initial consultations. Speak with a few and get all of your options explained.

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BK is federal when it comes to debts and it will wipe out any judgement that is entered against you unless it can be proved that you were negligent (a very high bar to jump in an accident case unless you were charged with a DUI or proven to be driving in a reckless or negligent manner, not simply making a mistake).

the accident was the other at foult cops said i had no foult at all.

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Federal exemption amount: 11 USC 522 (d)(11)(D) a payment, not to exceed $15,000, on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent.

You can exempt this under federal exemptions, plus maybe another $10,000 by stacking 11 USC 522(d)(5) on top of it. So what kind of settlement are we talking about?

Screw the judgment for now. Are you judgment proof? Judgments will be voided when you eventually file anyway.

Edited to add: is there a judgment lien against any of your property? If so, your bk will have a quick additional step: Motion to Void Judgment Lien.

Edited by jq26
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I'm 3000 miles away...I'm surprised California would not allow federal exemptions being as how liberal they tend to be. In my state, you have the option to go federal or state, depending on which is better for you.

Glad you're on top of it!

Edited by jq26
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The best you can do is to consult a bankruptcy lawyer. The are expert in these cases. They can really advice you well. The main thing is paper work which they handle very well. Personal bankruptcy can be a good way to deal with out-of-control consumer debts like credit cards and personal loans. But it does not eliminate all kinds of debt. You will still owe debts to the federal government, like back taxes and student loans.

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Bankruptcy is a process in which consumers and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. For the most part, bankruptcies can be divided into two types- liquidation and reorganization.

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