Bankruptcy is based on federal law that enables individuals to be relieved from their debts and obligations. The aim of bankruptcy law is to permit the debtors to start again in their financial situation. A bankruptcy means that the debtor will no longer be pursued by creditors to pay the debts that have been discharged.

In the case of a judgment that has been made against the debtor, this may also be discharged as a result of bankruptcy. Of course, it would depend on the eligibility of the person filing for bankruptcy. If he is merely trying to escape the debt resulting from the judgment and he does not qualify for bankruptcy, he may fail in his attempt.

However, assuming that he qualifies for a bankruptcy in which several of his debts may be discharged, a debt resulting from a judgment may also be discharged. On the other hand, there are certain things that the debtor must keep in mind. In the case of a complaint claiming fraud that would transform the debt into a non-dischargeable one after bankruptcy, the entry of a judgment against the debtor may prohibit him from contesting the facts at a later date. A debtor may only be able to avoid a judgment lien attached to a property if it impairs an exemption. For unliquidated debts, a judgment against the debtor may liquidate the debt and cause the amount of debt to surpass the limits imposed for Chapter 13 bankruptcies.

With regards to judgments involving the garnishment of wages, bankruptcy will be able to stop it. The debtor may be able to recover from the creditor or sheriff, the pay that has been earned before the filing of bankruptcy if the wages are indeed exempted. If the debtor is unable to obtain the pay from the creditor, he may file a lawsuit in the bankruptcy court.

It should be noted that the decision to file a petition for bankruptcy should not be the result of a single debt. It should be made after taking into account the complete financial situation, possible alternatives, and the scope of relief that would be provided by bankruptcy.

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My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications. I currently live in Carlsbad, California with my beautiful wife and children.

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