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Chapter 7 Bankruptcy

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Can You File Bankruptcy on a Judgment? Know the Rules

Can You File Bankruptcy on a Judgment and Eliminate It?

Can you file bankruptcy on a judgment is a question many people ask after losing a court case and facing wage garnishment or asset seizure. In many cases, the answer is yes, but there are important exceptions and rules that determine whether a judgment can be discharged.

This article explains how bankruptcy affects civil judgments, what types can be wiped out, and when it may not apply.

What Happens to a Judgment in Bankruptcy?

A judgment is a court order confirming you owe money to a creditor. Once a judgment is entered, the creditor may be able to collect by garnishing wages, levying bank accounts, or placing liens on your property.

Dischargeable Judgments

Can you file bankruptcy on a judgment tied to credit card debt, personal loans, or medical bills? Yes. These are considered unsecured debts, and if the underlying debt is dischargeable, so is the judgment.

For example:

  • Credit card lawsuit judgments
  • Medical bill judgments
  • Collection agency lawsuits

If you qualify for Chapter 7 or complete a Chapter 13 repayment plan, these judgments can often be eliminated along with the original debt.

Non-Dischargeable Judgments

However, not all judgments can be discharged. These include:

  • Fraud-related debts
  • Willful or malicious injury claims
  • Drunk driving accident claims
  • Domestic support obligations

In these cases, even if you file bankruptcy, the judgment may remain. The creditor may also object to discharge and request the court exclude the judgment from your case.

Filing Bankruptcy Before or After a Judgment

Timing matters. If possible, it’s often better to file before a judgment is entered, especially to avoid liens.

Filing Before Judgment

When you file bankruptcy before a lawsuit concludes, the automatic stay stops the case from proceeding. This can prevent a judgment from being entered at all, giving you more control.

Filing After Judgment

Can you file bankruptcy on a judgment that’s already entered? Yes, but be cautious. If the judgment created a lien on your property, the debt may be dischargeable, but the lien might survive. You may need to file a motion to avoid the lien in court.

The key is to act quickly. Waiting can limit your options and allow creditors to take further collection steps.

How to Protect Your Assets from a Judgment

Bankruptcy not only helps eliminate the judgment debt, but it also helps protect your wages, bank accounts, and property.

Chapter 7 Protection

In Chapter 7, the automatic stay stops:

You may be able to discharge the debt and remove the judgment if it qualifies. You must also ensure the judgment lien doesn’t attach to non-exempt property.

Chapter 13 Protection

Chapter 13 allows you to:

  • Repay judgment debts over time
  • Catch up on missed secured debts
  • Protect property from seizure

Even if a debt can’t be discharged, Chapter 13 gives you more breathing room and control over how you pay it.

Can You File Bankruptcy on a Judgment and Stop Collections?

Yes. Filing for bankruptcy immediately stops collection efforts through the automatic stay. This includes:

  • Debt collector calls
  • Wage garnishment
  • Lawsuit enforcement
  • Bank account freezes

Can you file bankruptcy on a judgment to stop these actions? Absolutely—if the debt qualifies and is handled properly during your case.

Get Help Understanding If You Can File Bankruptcy on a Judgment

If you’re wondering can you file bankruptcy on a judgment, now is the time to get answers. Bankruptcy may help you discharge the debt, stop collection, and regain financial control.

Contact us today for a free evaluation to see if your judgment qualifies for discharge and which bankruptcy chapter fits your needs.

Frequently Asked Questions (FAQs)

Yes. Filing triggers an automatic stay that halts lawsuits and collections, even if the judgment is pending.

It depends. If the underlying debt is dischargeable, the judgment usually is too, unless it’s for fraud or personal injury.

In some cases, yes. You may file a motion to avoid the lien if it interferes with exempt property.

Bankruptcy will stop garnishments immediately once your case is filed, protecting your income.

It’s often better to file before, but you can still file after. Timing affects lien avoidance and collection risk.

Key Takeaways

  • Bankruptcy can discharge many types of court judgments
  • Fraud, DUI, or support-related judgments are typically not dischargeable
  • Filing early can help avoid liens and additional collection actions
  • Chapter 7 and Chapter 13 both offer legal protection from enforcement
  • A free legal evaluation can help determine if your judgment qualifies

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