bankruptcy terms
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
September 4, 2025
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 some situations, filing bankruptcy may affect a judgment, but there are important exceptions and rules that determine how it is treated.
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? These are generally treated as unsecured debts, and whether the judgment is addressed depends on the nature of the underlying obligation and other factors.
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 may be addressed as part of the case, depending on the circumstances.
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, filing bankruptcy may not eliminate the judgment. 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 may pause the case from moving forward while the bankruptcy is pending.
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.
Timing can affect available options, and delays may allow additional collection activity to occur.
How to Protect Your Assets from a Judgment
Bankruptcy may provide a legal framework for addressing judgment debt and managing collection activity, depending on the circumstances.
Chapter 7 Protection
In Chapter 7, the automatic stay stops:
- Wage garnishment
- Lawsuits and court hearings
- Bank account levies
The debt may be addressed through the case if it qualifies under bankruptcy law. 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 is not dischargeable, Chapter 13 may allow it to be addressed through a structured repayment plan.
Can You File Bankruptcy on a Judgment and Stop Collections?
In many cases, filing for bankruptcy may pause 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? This depends on whether the debt qualifies and how it is handled during the 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 address the debt and manage collection activity, depending on your situation.
Contact us for a free evaluation to discuss how a judgment may be treated in bankruptcy and which chapter may apply.
Frequently Asked Questions (FAQs)
1. Can bankruptcy stop a lawsuit or court judgment?
Yes. Filing triggers an automatic stay that halts lawsuits and collections, even if the judgment is pending.
2. Will a judgment be erased in bankruptcy?
It depends. If the underlying debt is dischargeable, the judgment usually is too, unless it’s for fraud or personal injury.
3. Can I remove a judgment lien in bankruptcy?
In some cases, yes. You may file a motion to avoid the lien if it interferes with exempt property.
4. What if the judgment includes a wage garnishment?
Bankruptcy will stop garnishments immediately once your case is filed, protecting your income.
5. Should I file bankruptcy before or after a judgment?
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
Start Your Free Bankruptcy Evaluation
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