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Can Chapter 7 bankruptcy get rid of a lawsuit judgment?

There are many reasons that Tennessee residents file for Chapter 7 bankruptcy. The two most common reasons include medical debt and lost jobs. Another common reason people file for Chapter 7 bankruptcy is legal problems. In fact, legal judgments and civil suits in particular have a long history of pushing people into bankruptcy.

It was recently reported that famed legal defendant Casey Anthony has filed for bankruptcy. Anthony became a household name in 2008 when she was put on trial for killing her young daughter. Anthony was acquitted, but her post-acquittal life has not been easy. Among other things, Anthony recently reached a $100,000 settlement with a search and rescue group for lying to police during the search for her daughter.

Anthony reportedly filed for bankruptcy last January citing serious financial challenges. In her court filing she claimed nearly $800,000 in debts and $1,000 in assets. As part of her settlement agreement, Anthony will also not object to the search and rescue organization, Texas EquuSearch, being named as a creditor. According to Reuters, Anthony's most valuable financial asset at the moment is the right to her life story.

While not every legal judgment is dischargeable in Chapter 7 bankruptcy, many judgments can be discharged. Some debts that are not dischargeable include child support or alimony orders, debts owed to government entities like taxes and injury awards incident to a malicious or willful act. If a judgment does not fall into a nondischargeable category, and the creditor does not object, then the judgment can generally be forgiven in bankruptcy.

Source: Penn Live, "Casey Anthony is $800,000 in debt and filing for bankruptcy: Just deserts?", John Luciew, Oct. 22, 2013

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
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