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Can a company discharge a court judgment through bankruptcy?

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mplett

Junior Member
I am a contract writer with a firm that hired many contract writers, made bad business deals, and had to let go of all their contract writers. In doing so, they did not pay any of them (26?) for the last 6 weeks of their employment. I am owed $1,700. I have contracts that prove this and customer compliments that prove I completed the work well and on time. The writers have not gotten it together to file any kind of class action suit.

Today, we were told that our contracts are considered an "unsecured debt" and that the company only had enough money to pay off secured debts. The company is in Virginia, and I am in Indiana. To file a small claims suit, I would have to travel to VA, which will take up even more of my time and money. I am confident the court will rule in my favor, but I don't want to make the effort if the judgement can just get tossed out later due to bankruptcy.
 


Zigner

Senior Member, Non-Attorney
If they are in bankruptcy, you are stayed from filing suit. If you file suit, you can be hit with sanctions (ie: penalized monetarily)

ETA: Yes, this sort of judgment could be discharged in bankruptcy if you obtained it prior to the bk being filed.
 

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