Can I file bankruptcy on a judgment?

If you find yourself burdened with a judgment that you are unable to pay, the thought of filing for bankruptcy may have crossed your mind. Bankruptcy can provide relief from certain types of debts, but can you actually file bankruptcy on a judgment? Let’s delve into this topic and answer some related frequently asked questions.

Can I file bankruptcy on a judgment?

**Yes, you can file bankruptcy on a judgment.** Filing for bankruptcy can potentially eliminate the burden of a judgment against you, depending on the circumstances and the type of bankruptcy you file.

When you file for bankruptcy, an automatic stay is put in place, which freezes all collection activity against you, including judgments. This stay can provide immediate relief and halt any collection attempts by the judgment creditor.

The discharge of a judgment debt through bankruptcy depends on the type of judgment debt you have. If the judgment debt falls under certain categories, it may be dischargeable through bankruptcy.

What types of judgment debts can be discharged in bankruptcy?

1. Unsecured debts: If the judgment debt is unsecured, such as credit card debt or personal loans, it can generally be discharged through bankruptcy.

2. Medical bills: Medical judgments are typically considered unsecured debt, meaning they can potentially be discharged through bankruptcy.

3. Some types of civil judgments: Depending on the circumstances, certain civil judgments, such as those related to breach of contract or negligence, may be dischargeable in bankruptcy.

Are there any exceptions to discharging a judgment through bankruptcy?

4. Judgments related to fraud: If the judgment is related to fraud, intentional wrongdoing, or certain illegal acts, it is unlikely to be discharged in bankruptcy.

5. Child support and alimony: Judgments related to child support and alimony obligations generally cannot be discharged in bankruptcy.

6. Fines and restitution: Court-ordered fines, penalties, and restitution resulting from criminal activities cannot be discharged through bankruptcy.

Is it better to file for Chapter 7 or Chapter 13 bankruptcy to address a judgment?

7. Chapter 7: If your main objective is to discharge the judgment, Chapter 7 bankruptcy may be an option. However, it’s important to assess your overall financial situation before choosing this option.

8. Chapter 13: If you have a steady income and wish to keep certain assets, such as a home or a car, Chapter 13 bankruptcy may be a more suitable choice. It allows you to develop a repayment plan that may include the judgment debt.

Can bankruptcy help me avoid wage garnishment due to a judgment?

9. Chapter 7: Filing for Chapter 7 bankruptcy temporarily halts wage garnishment due to a judgment. However, it may not permanently prevent wage garnishment if the debt is not dischargeable.

10. Chapter 13: Wage garnishment can be stopped or reduced through a Chapter 13 bankruptcy repayment plan.

Can filing for bankruptcy eliminate a lien resulting from a judgment?

11. Chapter 7: While Chapter 7 bankruptcy can discharge the underlying judgment debt, it might not remove any liens associated with the judgment. However, in some cases, you may be able to negotiate the removal of the lien.

12. Chapter 13: A Chapter 13 bankruptcy repayment plan can potentially allow you to address the judgment lien by including it in the repayment plan and potentially reducing the amount owed.

In conclusion, it is possible to file bankruptcy on a judgment, and in certain circumstances, the judgment debt may be dischargeable through bankruptcy. However, it is crucial to consult with a qualified bankruptcy attorney who can assess your specific situation and guide you appropriately through the process.

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