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jeanineboyle · Mar 13, 2009, 08:11 AM

Hi,

If I have a money judgement against someone, will they still have to pay if they go through bankruptcy?

I live in Washington state. I signed over all assets, quit claimed them to my ex-husband in my divorce. In exchange, I was awarded a $45,000 cash settlement from my ex-husband in my divorce decree, that is backed by a deed of trust against the house that we owned together. It is nearly 6 months past the time that he was supposed to pay me, and he has still not paid it. He has stated that if I go after him to try to collect on it, he will just claim bankruptcy. If I get a judgement for $45,000 plus the interest that is accruing, would that protect me if he does file bankruptcy? What else could be done to protect myself?

It should be noted that I am in the fourth lean position on the house, and in today's economy, the houses have depreciated so much, there may not be enough equity left if I decided to foreclose to re-coop my interest in it.

Thanks,
Jeanine

JudyKayTee · Mar 13, 2009, 08:13 AM

Bankruptcy erases all debts except for a few in special classes - student loans, child support, spousal support. It does not appear that your judgment is in any of those classes.

What does your divorce Attorney say?

cdad · Mar 14, 2009, 08:28 AM

Originally Posted by jeanineboyle

Hi,

If I have a money judgement against someone, will they still have to pay if they go through bankruptcy?

I live in Washington state. I signed over all assets, quit claimed them to my ex-husband in my divorce. In exchange, I was awarded a $45,000 cash settlement from my ex-husband in my divorce decree, that is backed by a deed of trust against the house that we owned together. It is nearly 6 months past the time that he was supposed to pay me, and he has still not paid it. He has stated that if I go after him to try to collect on it, he will just claim bankruptcy. If I get a judgement for $45,000 plus the interest that is accruing, would that protect me if he does file bankruptcy? What else could be done to protect myself?

It should be noted that I am in the fourth lean position on the house, and in today's economy, the houses have depreciated so much, there may not be enough equity left if I decided to foreclose to re-coop my interest in it.

Thanks,
Jeanine

Im sure unless the house has burned to the ground and is part of a toxic waste dump that its worth $45,000. So if your turn comes up and you can forclose and none of the other interests move forward to purchase it then its yours.