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.

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.

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
Get a free, confidential bankruptcy evaluation. Learn More
Can You File Bankruptcy if You Already Have Judgments Against You?
 

References

Related articles

Filing Bankruptcy to Stop a California Civil Default Judgment

A default judgment is entered by a California judge when you fail to respond to a lawsuit in which you are named as the defendant within 30 days. Once an order of default is issued, the judge generally awards the creditor who filed the suit, called the plaintiff, some or all of the monetary damages sought in the lawsuit. Since the judgment award creates a debt that you owe the plaintiff, you may be able to have the debt discharged in bankruptcy depending on the type of bankruptcy you file and claims raised in the lawsuit against you.

Can You Include Returned Checks in Chapter 7?

When a debtor files for Chapter 7 bankruptcy, he must inform the court of all of his liabilities, including returned checks. Returned checks represent the debtor's unpaid debts. As such, they are dischargeable in bankruptcy, unless the creditor can prove fraud on the debtor's part.

Florida Bankruptcy Laws and Civil Judgment

Most debt resulting from civil judgments -- such as judgments relating to consumer and business debt -- can be discharged when you file for bankruptcy in Florida. There are some exceptions, but those are mainly limited to judgments for fraud, domestic support obligations or intentional acts.

Related articles

What Won't Be Dismissed in Chapter 7

In a Chapter 7 bankruptcy, often called liquidation bankruptcy, a debtor's non-exempt assets are sold to pay the ...

Can Creditors Attempt to Get Money After a Discharge?

When you file a petition for bankruptcy, you are asking a federal court for protection from creditors and time to work ...

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 ...

Bankruptcy Treatment of Default Judgments

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

Browse by category
Ready to Begin? GET STARTED