When you file chapter 7 can you include judgments from a lawsuit?

Answer 1

My understanding is that judgements cannot be amended since they are an agreement, through the courts, that you will pay the parties the stated amount. So, another action by another court (bankrupcy) cannot override the other court's ruling. My understanding is opposite in almost all regards: First: Judgements are not an agreement, they are in fact the opposite...the finding by a court (or through a process) in an adversarial proceeding. Imposed upon the litigants, like it or not. Most any agreement, like terms of loans freely entered into, leases, supply contracts, etc., can and are altered by the bankruptcy court. That is exactly what the Court does...resolves the agreements that the debtor cannot fulfill. The Federal Bankruptcy Courts (all bankruptcies are handled in federal courts) are given very broad and far reaching powers. It can and will litigate many issues of different types if the result is needed to resolve the bankruptcy. (Or it can elect to wait for the "normal"court process..and then abide by it or not). Like any higher court, it can override the finding of a lower one. While some types of things are exempt from dismissal in bankruptcy (child support for example), many times Bankruptcy is used to essentially erase or lessen the court findings. Seen recently, even by major corporations with substantial assets, because of the results of losing large environmental clean up responsibily (asbestos, etc) and drug liability cases in particular. The huge liability would be a burden on the Co for decades. The people/communities that would have had claims under those liabilities essentially got paid much less than they would have through the bankruptcy process, and the Co may even reorganize and continue without the liability going forward.