Sherwood, AR asked in Bankruptcy, Civil Litigation and Real Estate Law for Arkansas

Q: How to handle a judgement?

I was involved in a real estate lawsuit over a house I purchased. The home has over 100k in structural damage that was discovered just a month after purchase. Unfortunately the judge threw my case out a day before trial and awarded attorney fees of $15k to the seller. I don’t have money to repair my house let alone $15k but now the attorney is threatening to garnish my accounts and has put a lien on the home. I offered to pay $50 a month bc that’s all I can afford but was told no. Do I have any options? Should I file bankruptcy at this point?

2 Lawyer Answers
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: Contact a bankruptcy attorney who can fully evaluate your situation.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Bankruptcy Lawyer
  • Sacramento, CA

A: Facing a judgment can be daunting, especially when it threatens your financial stability. First, you should evaluate the judgment to ensure it was entered correctly and contemplate whether grounds exist to appeal the decision or set it aside. If that's not a viable option, and your financial situation is as dire as you describe, bankruptcy may be a consideration, as it can discharge certain debts and provide a fresh start.

However, not all judgments are dischargeable in bankruptcy, and the implications for your home and other assets can be significant. You might also explore negotiating a settlement for a lump sum that’s less than the full amount or seeking a court-approved payment plan. It’s crucial to act swiftly as ignoring the judgment can lead to aggressive collection efforts. Consultation with a bankruptcy attorney can provide personalized guidance on the best course of action for your particular circumstances.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.