Question by brandimichelle_28: What is a “Judgment” classified as when someone files “Chapter 13 Bankruptcy”?
I am curious if I had a tenant that I placed a court ordered judgment on due to non payment of the rent, and he has now filed Chapter 13 bankruptcy where does the judgment now fall into play? Is it considered a “Secured or Unsecured” debt? I have done tons of research to try and find this out and all it talks about is filing a judgment after the tenant files. The judgment was placed before the tenant has filed and they put it as a “Unsecured” debt? Doesn’t seem right to me. Thanks in advance for all your help!!

Best answer:

Answer by dusty_titus
Well sir, your confusion lies in the term “unsecured” debt. Rent, utilities, medical bills are considered unsecured; that is the court is powerless to repossess any property in default. If your tenant in addition to not paying you your rightful rent also defaulted on his car/motorcycle or boat payment, those items could be repossessed by court order. Now you say your tenant has declared bankruptcy (chapter 13) which means he owes more than all the property is worth, and all the creditors will have to divey up the property (if sold) to get their share of owed monies, usually 10%. If your tenant has a auto with a appraised value of less than 3,000 he gets to keep it, plus all his household goods, including clothes/tools/household furnishings – such as bed and home furnishings, unless they exceed a certain value. O yes, your judgment is worthless. The best a landlord can do is get rid the non-paying renter as soon as possible, even to helping him move, and paying moving expenses.

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