Expert: Terry Leeders - 8/6/2007

Question
In 7/2002 and 12/2003 I had judgments against me from the same law office, representing Discover and May Department Stores.  This took place in Maryland.  In 7/2005 I completed Chapter 7 bankruptcy.  The debts associated with the judgments were included in the Schedule F and the judgments themselves were listed under the "Statement of Financial Affairs."  However, the creditor claims that the bankruptcy covers only debts but not judgments and that the judgments should remain.  The lawyer who did the bankruptcy says that the bankruptcy was "no-asset" or "stecklo" (sp?) and that in this type of case everything is cleared, whether listed or not.  My question is two-fold: who is correct, the lawyer or the creditor?  And what should my next step be to get this removed?  That is, should my lawyer take care of it, do I need to pressure the creditor, or do I need to contact the courts?  Thank you in advance for any help you can provide.

Answer
Hi William.
I am trying to figure out what is driving the question.
I have 2 guesses.  If the creditor has a judgment lien on your real estate, the bankruptcy doesn't strip the lien off automatically, as you would have needed a motion to avoid the judgment lien.  You would have to re-open your old case to be able to do that, and can avoid it only if it impairs your exemption.
Or, if you are looking at your credit report and see the judgment....the fact that there was a judgment can stay on there for 7-10 years.  The creditor just cannot collect on that debt, as it was included in the bankruptcy discharge.  Hope that answers your question.