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Litigation concering business' is handled differently than personal lawsuits or BK. Lawsuit/judments against a business can sometimes be dismissed in a BK discharge. If the judgment pertains to personal injury, civil rights violation, etc. it is not ordinarily dischargeable in BK proceedings.
And it needs to be recognized that a company (or a person) does not go Bankrupt on a specific thing. If the company has assets they must be used to pay creditors before any debts are discharged....and to the degree that they can't raise cash (through sales of assets, pats of the biz, even getting new loans) to pay off the debt, the Stockholders are the first to lose.
While the court may ultimately determine who gets what...in a business situation there is frequently a group of creditors that try and work things out for the court approval. The court must follow certain rules, with certain rights of claim taking priority over others (like payroll over suppliers), and may allow one class a higher payback than another (again like payroll, normally paid 100% up to very high levels and where suppliers may get much less)....but really everyone of a class is treated equally. So, generally you would get paid something and they really can't do it to avoid paying you....without having many others they don't pay equally, and stockholders/owners who lose a whole lot, also.
Basically, more commonly than not, for a Company to go bankrupt and escape paying debt, the Stock in the company becomes owned (the company becomes owned or controlled), by the people they didn't pay. (They just get paid in ownership of stock instead of money).
Business bankruptcy, of course depending on the size of the business, can cost astounding amounts of money in itself.
Wiki User
∙ 16y ago
Wiki User
∙ 14y agoI would need more information about the type of business and if the judgment was separate from your personal debt. Typically, a judgment is classified as a nondischargeable debt in bankruptcy proceedings and will remain with you until you pay it and including during the process.
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Can a judgment be put on your credit if the debt was part of the bankruptcy?
Not if the debt was discharged in the bankruptcy. If the judgment was on the credit report before the bankruptcy was filed and/or was discharged in the bankruptcy, the entry will still remain on the CR for seven years.
Can you file bankruptcy on a fraud judgment?
If there is a judgment AGAINST you for fraud, then NO, such a judgment WILL NOT be discharged.
What happens to a judgment lien in a bankruptcy?
If the bankruptcy is discharged you are no longer responsible for the debt.
Why is a judgment lien still on the title after a discharged Bankruptcy?
Generally, judgements survive bankruptcy.
A person has a judgment but files for bankruptcy can bankruptcy void the judgment of an earlier date in WA state?
Bankruptcy does not void the judgment. It simply makes it noncollectable because it was discharged in the bankruptcy like any other debt.
Can you get a civil judgment removed from your credit report if it was included and discharged in a bankruptcy even if the judgment date is later than the bankruptcy discharge date?
Yes, you can have a civil judgment removed from your credit report if it was included and discharged in a bankruptcy, even if the judgment date is later than the bankruptcy discharge date. You may need to dispute the judgment with the credit reporting agencies and provide proof of the bankruptcy discharge to have it removed from your report.
Can a judgment be collected from a dissolved corporation?
The judgment would have to be presented to the bankruptcy court. Wow! Who mentioned bankruptcy? This is a money judgment against a admin dissolved corp. If bankruptcy had been filed the judgment, if listed, would be discharged and worthless.
Can a judgment that was discharged be reinstated 2 and a half years after the chapter 7 bk judgment was included in the bankruptcy?
It depends on the specific circumstances and laws governing bankruptcy in your jurisdiction. Generally, once a judgment is discharged in a Chapter 7 bankruptcy, it cannot be reinstated. However, if there were any exceptions to discharge or if the judgment was based on fraud, it could potentially be reinstated. It is best to consult with a bankruptcy attorney for guidance specific to your situation.
If you file business bankruptcy do you also file personal bankruptcy?
I suppose you could, but even if you did manage to get the financing together to open another business, any profits from it would be subject to seizure by the court and the bankruptcy trustee to pay off the bankruptcy judgement. There is no bankruptcy "judgment." If the bankruptcy is over and you have your discharge, you can open a business, and any money you make is yours. Providing the first bankuptcy is discharged.
How can you get a judgment off your credit report after filing bankruptcy?
If the debt that you were sued over, or the judgment itself was included in your bankruptcy, you only need send a copy of your bankruptcy papers to the credit reporting agencies. The judgment will not "come off", but it should get marked "included in bankruptcy" or "discharged through bankruptcy".
How do you get a judgment to say satisfied on your credit report when it was discharged in your bankruptcy?
If a judgment was included in, and discharged by, your bankruptcy; there is no need to obtain a separate disposition. Write the credit bureaus and send a copy of your bankruptcy papers which show this judgment included. That should suffice to have the judgment removed from your report and the original tradeline from the debt marked "included in BK". Talk with an attorney or go to a bank that has a notary service.
Can you file bankruptcy once a judgment is entered against you in the state of Pennsylvania?
Yes, but the judgment may not be discharged in BK without compensation.
