Bankruptcy 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 bankruptcy to still be declared.
The debt that results from a judgment may also be discharged as a result of the bankruptcy proceedings. However, this would depend on whether the person is qualified to file for bankruptcy 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 bankruptcy 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 bankruptcy. 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 bankruptcy not just because of a single debt or obligation. It is advisable to consider the total scenario, the various alternatives other than bankruptcy, and the kind of relief that bankruptcy provides.