Will Filing For Bankruptcy Stop Judgments?

Do you have judgments against you right now? If you do, it is only a matter of time before your creditors will start requesting garnishments on your paychecks, if they have not already started this. If you are in this position, you might be wondering if bankruptcy would stop these judgments. In some cases, the answer is yes, but there are other situations when the answer is no.

What is a judgment?

You can owe money for all kinds of things, but not all creditors will file judgments for past-due debts. A judgment requires a creditor to go to court to sue you for the money you owe. If the court agrees with the creditor, they may place a judgment against you. This judgment will appear on your credit report and will be a debt you have to pay. In fact, if you have a judgment against you, that creditor has the right to request wage garnishment from you. If this happens, it will be very hard to stop the garnishment from happening. With bankruptcy, though, you might be able to eliminate judgments and wage garnishments.

What types of judgments will bankruptcy stop?

There are a variety of different types of judgments you may have against you that bankruptcy will stop. Primarily, though, bankruptcy will only stop judgments that are for unsecured debts, such as medical bills, personal loans, and credit card debts. If you have a judgment for one of these things, it is highly likely that filing for bankruptcy would not only eliminate the judgment but would also stop the wage garnishment from occurring.

What types of judgments will bankruptcy not stop?

Bankruptcy does not stop all types of judgments, though. If your judgment is for a debt that would not offer a discharge, bankruptcy probably would not stop you from having to pay it. For example, if your judgment is for student loan debts or alimony that you owe, filing for bankruptcy will not usually end these debts. These are priority debts, which means you will always have to repay them in full even if you file bankruptcy. If you are not sure what category your judgments fall into, talk to a bankruptcy lawyer about it.

Bankruptcy can provide a lot of relief for many situations, including times when people have judgments against them. If you have questions about your financial situation or judgments against you, talk to a bankruptcy lawyer today.