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Bankruptcy and Judgment

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missflo

Member
What is the name of your state (only U.S. law)? New Mexico

We are considering filing Chapter 7 but my husband had a judgment filed against him by an individual several years ago. He made written arrangements with the man to reduce the amount of the judgment from $ 100,000.00 to
$ 60,000.00 and agreed to make make monthly payments until it was paid.
This was working fine for quite some time, but, our circumstances have changed and we are now unable to keep up the payments along with many of our other obligations. The terms of his agreement state that if he fails to make any payment as outlined, the original judgment will be reinstated (the creditor vacated it when the agreement was implemented) If we file bankruptcy, is this debt eliminated? Can he go back to court and simply sue again for this debt and obtain another judgment after we're out of bankruptcy?
 


bigun

Senior Member
If the underlying debt is the sort of debt eligible for discharge then the judgment creditor is out of luck. The debt to him will be discharged and he can't sue again.
 

missflo

Member
What sort of debt would be eligible for discharge? The original judgment resulted from an individual who sued my husband because he lost money on a real estate investment in which my husband guaranteed repayment and could not follow through after a turn of events which ended in foreclosure of the property involved.
 

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