Bankruptcy (BK) is a privilege that is provided by federal law to enable individuals to be relieved from their debts and obligations. The primary goal of bankruptcy law is to permit the debtors to begin again in their financial situation. A bankruptcy means that the debtor will no longer have to pay money that is owed to certain creditors. In the case where a judgment has already been made against the debtor, it is indeed possible for BK to still be declared.

The debt that results from a judgment may also be discharged as a result of the BK proceedings. However, this would depend on whether the person is qualified to file for BK protection. He may not succeed in his plan if he just wants to escape the obligation to pay the debt resulting from a judgment. 

However, if the debtor is really having financial problems, the amount that is due as a result of a judgment against him can be erased along with other debts that can be eliminated by a bankruptcy. With this in mind, it is also important to take note of certain things. One issue is with regards to the garnishment of wages resulting from a judgment.

A bankruptcy will be able to put the garnishment to a halt and the debtor may also recover the amounts that have been taken by the creditor. He can request the return of his pay from the sheriff or from the creditor. If the creditor refuses to return the amount, the debtor may file a lawsuit through the court.

In the case of unliquidated debts that have been made liquid by a judgment, there is the possibility that this may result in a total debt that exceeds the limit required for a Chapter 13. The debtor may need to check on this before filing. With regards to the case of a judgment lien against an asset of the debtor, this is hard to escape unless it has a negative effect on an exemption. 

It should be pointed out that a person should make the decision to file for BK not just because of a single debt or obligation. It is advisable to consider the total scenario, the various alternatives other than BK, and the kind of relief that bankruptcy provides. 

Last but not least, seek a few good attorneys to talk to. Ask them how many they have done, how many they have and what they charge? Check them out via the State Bar online license check for any violations.

The staff at LoanSafe.org are not attorneys, but information providers via online publishing. We believe that sharing information with consumers online is the best way to educate them on what options and help is available to them.  Our articles are not to be taken as legal advice and we urge you to seek a licensed attorney for any legal councel you may need.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.