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Which is worse, a 20 year judgment or bankruptcy?*

I have a court date where a judgment will be filed against me. Legal aid told me they could get a 7 year judgment which can be renewed in 7 years again and again, or a 20 year judgment. My only other option is filing bankruptcy which from what I understand is on my credit for 7-10 years. I know bankruptcy is the worst of the worst, but a 20 year judgment will last the rest of my adult life. It's all scary to me.

Answers:

1) the judgment for sure

2) This is only my opinion but I would file bankruptcy on it rather than a 20 year judgement. The bankruptcy will go away after 7 yrs or so. 20 years is a long time to have bad credit.

3) bankruptcy cause before 20 years you'll be fine

4) The bankruptcy will last 7-10 years on your credit. Once the judgment is entered, they will have the right to garnish any wages you earn, garnish any bank accounts you have, and place a lien on any real property you own or buy in the future. You will have to deal with the judgment at some point. If you can get the money together and can pay the judgment, the judgment can be removed from public record once it has been satisfied.

5) Take a deep breath. Ok so you messed up, now where do you go from here? Think of which is the most honest and most honerable of the two choices--you don't want family and friends to look back and say that you made a mistake and then a bad choice on top of it. Good luck!!

6) If you will never be able to pay back the judgment, or certainly within the next 7 years, then Bankruptcy would probably be the best route. Once the judge swares out the judgment it will attach to everything your own, including your home or any other property you own, your checking and savings accounts and also your income. They can contact your employer and force them to take up to 50% of your paycheck. They can also empty out your checking and savings accounts. Depending on your state laws, they may even be able to force the sale of your home or foreclose on you to get their money. If you have equity in a vehicle, they can probably seize that as well. The Bankruptcy will cancel this debt (unless the judgment was due to fraud). If you file bankruptcy, make sure that after discharge you have your attorney file a "Motion to Avoid Judgment Lien". (Don't worry, your attorney will know what your talking about.) This will clearly cancel the judgment in writing and you will want to get that Court Order recorded with your County Recorder. A Bankruptcy will appear on your credit report for 10 years, but after just a few years you'll be able to get conventional financing and mortgages. (Heck, my ex-wife bought a new car with a low interest rate within months of bankruptcy.) Call an Attorney because there are a million issues that you will need to discuss to determine what type of Bankruptcy to file. Most attorneys will give you an initial consultation for free. Mr. Financial Freedom http://www.5stepstofinancialfreedom.com

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