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Miami Lawsuit Judgment Lawyer

No one wants to deal with lawsuits. However, if you fall behind in payments, or you neglect your obligations, you may wind up with a lawsuit filed against you. It can be frightening to have a lawsuit filed against you, especially if you have no way of satisfying the relevant debt. There is a way to stop lawsuits moving against you – filing for bankruptcy, most often under Chapter 7, will generally wipe out any civil suit against you, though there are exceptions.

Is The Debt Dischargeable?

One of the major questions that must be asked is whether or not a debt is dischargeable in bankruptcy. If a debt is not dischargeable in Chapter 7 bankruptcy, then the debtor will simply restart its collection efforts once proceedings are over, because for them, nothing fundamental has changed. Some examples of nondischargeable debts are student loans (in most cases), child support and any kind of debt owed to the government (such as past due taxes).

If your debt is not one of these types, you may be in the proverbial clear, but a creditor may file what is called an adversary proceeding. Adversary proceedings are filed when a creditor wants to determine the dischargeability of a debt – usually, to try and get the court to state that the debt is nondischargeable. The court may determine that it is dischargeable, but an adversary proceeding still causes considerable time and trouble even if it ultimately winds up in your favor.

Watch Out For Liens

Even if the bulk of your debts wind up nondischargeable, you still may face issues if creditors’ liens have attached to your assets, such as a home or automobile. Liens are security interests that creditors can claim on a debtor’s assets until the debt is paid, and many will do this, especially if the debt is significant. There is, however, a way that you may be able to escape liens if you have property you can claim exemptions on.

Normally, debtors are permitted to exempt certain assets from a Chapter 7 bankruptcy proceeding, meaning that creditors may not touch these assets when trying to seek payment. Florida has its own set of statewide exemptions (other states require debtors to use federal exemptions) which are quite generous – however, liens can still attach to these exempt assets in some situations.  If you have exempt assets, and you have a money judgment against you, you may be able to lift or ‘avoid’ the lien by sacrificing the equity in that asset. This does not always work – there may not be enough equity in the asset – but in many cases this will be enough to lift the lien.

Contact An Experienced Miami Judgment Lawyer

It is tempting to many to try and handle bankruptcy and its related issues by themselves, not least of all because shame over financial problems is still common. However, because these issues can be so intricate, seeking the help of an attorney is always recommended. The dedicated Miami lawsuit judgment lawyers at Nowack & Olson, PLLC are well versed in this type of law and are happy to try and help you with your case, with a nonjudgmental and attentive ear. Call us today to set up an initial appointment.

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