Unfortunately, when you receive a Chapter 7 Bankruptcy discharge, there is no little bankruptcy dude that runs throughout the state and erases public records. I wish this were true, but it’s not. When you receive a discharge in Chapter 7 Bankruptcy, the public record needs to be cleaned up. The judgments you received before you filed Chapter 7 Bankruptcy on pre-petition debt still linger in the public records after you receive your discharge.
You say so what? What can they do to me, nothing? Well, that is true. The judgment creditor cannot collect on the judgment after discharge without violating federal law. But, that likely will not be the problem you will face. Instead, you are going to try and procure credit at some point and that judgment will come back to haunt you. The dealership or mortgage officer will say everything looks good “except” this judgment on the public record. You will say, wait a minute, I filed bankruptcy on that debt. They will say, we know but it shows up on the public record and creates a cloud on your credit.
This is why it is very important, in whatever state you live in, to clean up the public record after you file bankruptcy and get a discharge. Most states have a process to remove judgments that are “void” as a result of a Chapter 7 Bankruptcy discharge. The process in most states will cost you a nominal fee and is fairly straight forward to do. Many law firm will do this for you for a fee. It is important to do this immediately after discharge so the matter is placed behind you for good.
When the time is right, or when you are ready, reach out to Minnesota’s only bankruptcy law firm to help you 1) get rid of debt and 2) repair your credit in Kain & Scott’s FREE 90-Day Credit Repair program at www.kainscott.com. This includes removing judgments for free. (client to pay costs only).