Is a judgment considered a secured claim for bankruptcy purposes?

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Is a judgment considered a secured claim for bankruptcy purposes?

I am filing for Chapter 7. On Schedule D it asks for a list of creditors holding secured claims. There is a civil judgment entered against me for the amount owed to a creditor; however, they have not attached a lien against any of my belongings (mainly because I don’t have any).

Asked on August 5, 2011 Michigan

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, it is considered a secured claim for bankruptcy purposes.  I am assuming that an unsecured creditor took you to court for the debt owed (possibly a credit card?) and that they won the case (or that you possibly did not respond and a default judgement was granted?). Once an unsecured creditor sues you in court and obtains a judgement against you they go from being unsecured to secured.  Secured creditors have more rights than unsecured creditors.  They can garnish salary as well as attach personal and real property so you are not out of the woods yet here. If bankruptcy is the choice that you have made to help rid you of the claims then good luck to you. 


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