3 ms·
> Does a bankruptcy eliminate a civil judgement? It depends. In the Holmes case, the plaintiff, if they win, will probably argue that at least part of the set
by throwawayjava 7y ago
> Does a bankruptcy eliminate a civil judgement?
It depends.
In the Holmes case, the plaintiff, if they win, will probably argue that at least part of the settlement should be nondischargeable because Holmes committed fraud.
> Why wouldn't everyone file and wipe out their civil case debt then?
Because either:
1) the courts explicitly disallow it in the particular case; or,
2) the combination of non-exempt assets and continued access to credit is more valuable than the settlement amount (in this case, you would end up paying the entire amount during bankruptcy proceedings in any case anyways, and then have a black mark on your credit for no good reason).