Interlaken, NJ Bankruptcy Law Firms & Lawyers

All debts are included in a bankruptcy. Depending on state law, you might even receive a discharge. That does not mean that a lien does not attach to the property though and which would have to be paid to sell the property. If enough, those debts could even force a foreclosure. Depends on the circumstances. Visit with an attorney to properly plan and navigate this area.

If the creditor can prove your husband owes it money according to the terms of the lease contract, the creditor has a right to get a declaration from the court of how much is owed. The declaration of how much the creditor is allowed to collect, with the aid of the sheriff, from your husband's non-exempt property or money is called a judgment. If your husband believes he does not owe all or a part of the amount of money the creditor alleged in its "complaint," your husband can file in the court clerk's office, for himself acting as his own attorney, a written answer denying the parts of the complaint that are inaccurate. Your husband can get a copy of the Answer Form from the clerk's office in the courthouse where the case is pending. It appears that the car was repossessed approximately four years before the creditor filed his lawsuit. If more than four years passed from the time lease payments stopped until the creditor filed his complaint with the court, the creditor may be barred from collecting the claim by the California Statute of Limitations for contract claims. If you calculate that the Statute of Limitations applies, your husband can state this defense in his Answer to the Complaint. If your husband does not answer the complaint, the creditor will request entry of "default" from the court clerk. This means the court clerk will enter in the court record a note that the deadline for your husband to answer the complaint is passed, and the effect is your husband may no longer present any denials or defenses. After the clerk enters a default, the creditor will present sworn statements and documents to the judge to prove the claim for money, and if the judge agrees with the claim, the judge will render a judgment as to how much money the creditor can try to collect from your husband. If your husband has no non-exempt separate or community property or money, the creditor will be unable to collect the judgment. However, the creditor can try to enforce the judgment for ten years, and the creditor can petition the court to extend the life of the judgment for an additional ten years. If the creditor gets a judgment and is unsuccessful in seizing money or property to collect it, the creditor may give up and go away without ever bothering you again. If, however, the creditor relentlessly pursues you more than you can handle, you could consult with a bankruptcy attorney. Upon the filing of a bankruptcy case, an automatic stay (same as a restraining order) will issue. The automatic stay prohibits creditors from taking any further collection action against you or your property. If the bankruptcy judge issues the bankrupt debtor a "discharge," then the claim will be forever extinguished, and the creditor will be forever enjoined from collecting it.

Your bankruptcy Discharge can only discharge debts that existed on the date that you filed the petition. Since these new medical bills arose long after your bankruptcy filing, they cannot be covered by your prior Discharge.