{"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":"2026-07-21T13:44:45","modified_gmt":"2026-07-21T18:44:45","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\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, 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

\n \n <\/i>\n Fact-Checked\n <\/summary>\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\n\n

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Key Takeaways<\/h2>\n

Bankruptcy can clear most lawsuit judgments<\/span> by discharging the underlying debt. Filing bankruptcy<\/span> immediately stops wage <\/span>garnishment<\/span> and other collection efforts through an automatic stay<\/span>. If the creditor has placed a lien on your property using the judgment, you’ll need to take an additional step called lien avoidance<\/span> to remove it.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Whether a specific judgment can be cleared depends on the type of debt. Most judgments from credit cards<\/span>, medical bills<\/span>, and personal loans<\/span> are dischargeable, but judgments for child support<\/span>, student loans<\/span>, and fraud-related debts are not.<\/p>\n

Chapter 7<\/span><\/a>\u00a0bankruptcy<\/span> or\u00a0Chapter 13<\/span><\/a>\u00a0bankruptcy<\/span> can discharge or reorganize many types of debts, including most lawsuit judgments<\/span>. Whether a judgment will be\u00a0discharged in bankruptcy<\/a>\u00a0depends on its type. Another critical factor is whether the creditor who won the judgment has a lien on your property.<\/p>\n

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

If you\u2019re in over your head with debt, you may already have lawsuit judgments<\/span> against you. Creditors commonly file breach-of-contract claims against debtors for\u00a0unpaid debts<\/span>, such as credit card<\/span> debt<\/span>, personal loans<\/span>, and medical bills<\/span>. If you don\u2019t respond to the judgment creditor<\/span>\u2019s lawsuit and there is a\u00a0default judgment\u00a0against you, the court can enter an order against you for the debt you owe and other costs, including attorney and filing fees. The same can occur if you do respond, but lose.<\/p>\n

The money judgment<\/span> may allow your creditor to garnish<\/span> your wages, your bank account<\/span>, or take your assets in order to collect on the outstanding debt. Filing for bankruptcy\u00a0can eliminate judgments and stop wage <\/span>garnishment<\/span>, but it depends on the type of original debt.<\/p>\n

Filing vs. Discharge<\/h3>\n

When you file bankruptcy<\/span><\/a>, there is an automatic stay<\/span> on all types of collection actions<\/span>. During the bankruptcy process<\/span>, creditors cannot call you, evictions cannot go forward, and some wage <\/span>garnishments<\/span> are suspended. After bankruptcy, any debts not discharged must be repaid, and garnishments<\/span> may continue.<\/p>\n

Dischargeable vs. Non-Dischargeable Debt<\/span><\/h3>\n

After you file your bankruptcy petition, the bankruptcy court<\/span> will enter an automatic stay<\/span>, requiring most creditors to stop all collection efforts. This means they can\u2019t call your phone number<\/span> about a repayment plan<\/span>. Any collection lawsuit, eviction, foreclosure<\/span>, repossession, or wage <\/span>garnishment<\/span> is paused while you work through your bankruptcy case<\/span>.<\/p>\n

At the end of the bankruptcy process<\/span>, court judgments<\/span> arising from dischargeable debts, such as\u00a0credit card<\/span> debt<\/span>, overdue utility bills,\u00a0medical bills<\/span>, or personal debts to family, friends, or others,\u00a0can generally be discharged. Bankruptcy will not eliminate judgments stemming from non-dischargeable debt<\/span><\/a>.<\/p>\n

What\u2019s a non-dischargeable debt<\/span><\/a>? It\u2019s types of money owed that bankruptcy discharge<\/span> can\u2019t clear. These include:<\/p>\n