What Happens to Judgments in Bankruptcy?

By Teo Spengler

If a creditor wins a money judgment against you, that judgment may or may not be subject to discharge in bankruptcy. How judgments are treated in bankruptcy court depends on the type of debt you owe, not merely on the fact that a creditor won a judgment. Certain debts are not discharged in bankruptcy, and judgments on those debts will not be discharged either.

If a creditor wins a money judgment against you, that judgment may or may not be subject to discharge in bankruptcy. How judgments are treated in bankruptcy court depends on the type of debt you owe, not merely on the fact that a creditor won a judgment. Certain debts are not discharged in bankruptcy, and judgments on those debts will not be discharged either.

Statutory Exceptions to Discharge

Federal statutes contain a list of the types of debt that cannot be discharged in bankruptcy. This list includes money owed in taxes, child support, student loans and debt resulting from negligent or criminal behavior like fraud or drunk driving. Judgments resulting from these debts are likewise not discharged.

Get a free, confidential bankruptcy evaluation. Learn More

Judgments Discharged in Bankruptcy

Most other debts and money judgments can be extinguished in bankruptcy court. Judgments frequently discharged include credit card debt, consumer debt and medical bills. The creditors of discharged debts can no longer attempt to collect them.

Get a free, confidential bankruptcy evaluation. Learn More
Florida Bankruptcy Laws and Civil Judgment

References

Related articles

Is There Anything That Can Be Forgiven in a Chapter 13 Bankruptcy?

Bankruptcy is a legal process designed to help individuals and companies reduce or eliminate their debts. The laws related to bankruptcy, called the United States Bankruptcy Code, define several different types of bankruptcy processes. The procedures and effects vary according to the type of bankruptcy procedure used.

Can Chapter 7 Bankruptcy Discharge Education Expenses?

If you are filing for bankruptcy protection, you are seeking protection from your creditors. Bankruptcy gives debtors a fresh start, and a chance to get back on sound financial footing. But the law does not allow you to discharge, or cancel, student loans, unless you can prove that repayment would cause a serious hardship. Keep in mind that this applies to loans made expressly for your education -- if you borrowed on your credit card or used another source of funds to pay for schooling then, technically, you have not taken out a student loan, and the court may discharge the debt.

Bankruptcy & Child Support Arrears in New Jersey

Bankruptcy can help you get a fresh start financially by eliminating many of your debts or giving you a chance to catch up on debt payments. Filing bankruptcy in New Jersey does not eliminate child support arrearages, but it may allow you to stop making payments on your arrearages for a while.

Related articles

Can You File Bankruptcy if You Already Have Judgments Against You?

Filing for bankruptcy can protect you from creditor actions, such as wage garnishment -- and may free you from some ...

Bankruptcy Treatment of Default Judgments

If you've filed for bankruptcy protection, you benefit from an automatic stay of collections by your creditors. This ...

What Is Dischargeable in Bankruptcy?

Most debts are dischargeable, or wiped out, in bankruptcy, from credit cards and personal loans to medical bills and ...

What Happens in a Civil Judgment Before Bankruptcy?

A civil judgment often leads to financial distress, which may lead a person to file for bankruptcy. Bankruptcy may mean ...

Browse by category