Q: Can I still file for bankrupcy after a default judgement for credit card debt?
A:
I think what you're really asking is whether credit card debt that has been reduced to judgment can still be discharged in bankruptcy. The answer is yes.
If you're considering bankruptcy based on a debt that has recently been reduced to judgment, don't delay in talking to a bankruptcy attorney. In most cases, the automatic stay prohibits collection action as soon as you file, so you could cut off that process before it ever begins.
*Kevin Chern is Managing Partner of UpRight Law, a national law firm with licensed attorneys providing bankruptcy and consumer legal services in all 50 states. He is an Illinois licensed attorney with 21 years of federal consumer bankruptcy and consumer protection law experience. This response is for informational purposes only and is not intended to be legal advice. For legal advice, consult an attorney licensed in your state with the appropriate expertise.
A: The answer is yes. In most cases the debt will be discharged in bankruptcy. On rare occasions the default judgement will contain language of fraud. The creditor then may try to assert that fraud is one of the exceptions to discharge. You should present the default judgement to your bankruptcy attorney so he can evaluate whether there might be an issue.
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