No, it Does Not! A considerable number of property owners who have been through bankruptcy are unaware of their personal obligations vs. their real property. For example, a property owner owes money to “Credit Card Company X” and does not pay them. “Credit Card Company X” goes to court and then records a judgment. The property owner files bankruptcy and lists “Credit Card Company X” as a creditor and then receives a full discharge issued by the bankruptcy court. This means she/he no longer owes “Credit Card Company X” any money. This is where most bankruptcies begin and come to an end. The judgment recorded by the “Credit Card Company X” was attached to the real property and is NOT removed, discharged or satisfied by bankruptcy. The property owner’s personal obligation to repay “Credit Card Company X” was removed by the bankruptcy but the judgment is still attached to the real property. These recorded judgments also apply to HOA dues and mechanic liens. Please be sure to go over these items with an attorney before you file bankruptcy.
My recommendation is to write all your questions down and ask the attorney about recorded judgments. If you need referrals to an attorney, please let me know.
