How long before a judgment goes dormant?
Question Details: I am a victim of an investor/partner/officer closing a business and left me with two judgments and an EDD lien. How long before these go dormant? This has been over 4 years ago, can I appeal them. Are they dischargeable in a bankruptcy? What can I do?
Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.
You are writing from California, and I assume you are referring to California judgments entered against you. Under California law, a judgment remains effective for ten years, and California law allows a judgment creditor to renew the judgment for successive ten-year periods, before the judgment has expired. Therefore, a judgment can theoretically be renewed indefinitely, and the amount of judgment, including accrued costs and interest can become quite large. If the judgments are four years old it is probably too late to appeal them. Most judgments can be discharged in bankruptcy. However, some judgments such as those based on fraud cannot be discharged in bankruptcy. Also, a secured debt, such as judgment lien on your properties may not be dischargeable in bankruptcy. You should consult your own attorney and discuss your specific facts with him, in order to protect your legal rights.
Judgments last in most states for 20 years. in other words, the creditor has 20 years from the date of the judgment to enforce it. if the judgment is agaisnt you personally and you do not want to pay it off, then you may property discharge the judgment in bankruptcy. if the judgment is against you and the business the judgment will still be enforceable against unless both the company and you file BK. I suggest that you set up an appointment with a lawyer licensed to practice law in your state that is familiar with the bankrupcty laws as you may want to file to get rid of these liens. however, your credit will take a hit, which is why you should discuss this with a lawyer beforehand.
