{"id":286951,"date":"2021-01-12T08:47:48","date_gmt":"2021-01-12T13:47:48","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/what-is-bankruptcy\/ask-a-lawyer-can-bankruptcy-clear-lawsuit-judgments.html"},"modified":"2023-11-13T15:12:00","modified_gmt":"2023-11-13T20:12:00","slug":"ask-a-lawyer-can-bankruptcy-clear-lawsuit-judgments","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/ask-a-lawyer-can-bankruptcy-clear-lawsuit-judgments.html","title":{"rendered":"Can Bankruptcy Clear Lawsuit Judgments?"},"content":{"rendered":"\n
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Can Bankruptcy Clear Lawsuit Judgments?<\/h1>\n
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\n By Linda Sanabria, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

You may be wondering if bankruptcy stops lawsuit judgments, or court orders stating that you owe a balance to your lenders\/creditors.<\/p>\r\n

Chapter 7<\/a> bankruptcy or Chapter 13<\/a> bankruptcy can discharge or reorganize many types of debts, including most lawsuit judgments. However, whether a lawsuit judgment will be discharged in bankruptcy<\/a> depends on the type of judgment it is. Another critical factor is whether the creditor who won the judgment has a lien on your property.<\/p>\r\n

Bankruptcy Can Discharge Money Judgments<\/h2>\r\n

If you have found yourself in over your head with debt, you might already have lawsuit judgments against you. Creditors commonly file breach of contract claims against debtors over unpaid debts such as credit card debt, personal loans, and medical bills.<\/p>\r\n

If you don’t respond to the judgment creditor’s lawsuit and there is a default judgment<\/a> against you, or you do respond to the lawsuit and lose, the court can enter an order against you for the debt you owe and other costs, including attorney and filing fees.<\/p>\r\n

The money judgment may allow your creditor to garnish your wages or bank account, or take your assets in order to collect on the outstanding debt. Many people wonder if filing bankruptcy can get rid of the judgments and stop wage garnishment. Oftentimes, it can, depending on the type of original debt.<\/p>\r\n

Dischargeable vs. Non-Dischargeable Debt<\/h2>\r\n

After you file your bankruptcy petition, the bankruptcy court will enter an automatic stay, requiring most creditors to stop all collection efforts. This means they can’t contact your phone number about a repayment plan. And, any collection lawsuit, eviction, foreclosure, repossession, or wage garnishment is paused while you work through your bankruptcy case.<\/p>\r\n

At the end of the bankruptcy process, court judgments stemming from any dischargeable debt such as credit card debt, overdue utility bills, medical bills, or personal debts to family, friends, or others, can generally be discharged. However, bankruptcy will not eliminate judgments stemming from non-dischargeable debt<\/a>.<\/p>\r\n

That means a bankruptcy discharge can’t clear judgments stemming from one of the following types of non-dischargeable debt<\/a>:<\/p>\r\n