Will bankruptcy discharge debts from judgments?

Many people get sued by credit card companies, banks and creditors every day.   In most of these cases, the creditor will win.  First, the person who owes the debt, the debtor, cannot afford to fight the lawsuit.  Secondly, the debtor does owe the debt.  The question is what your options are if you cannot afford paying the judgment.

If you are sued by a creditor and they win the lawsuit, the creditor has many options at their disposal.  They can garnish wages, levy bank accounts and put liens on homes.

How do you stop creditors from collecting on judgments?

To stop the creditor from taking these actions you can of course pay the debt.  However, if you couldn’t pay the debt prior to the lawsuit, it’s probably also true that you cannot pay the debt after the creditor obtains a judgment against you.

In this situation you can attempt to negotiate a payment with the creditor.  Some creditors and their attorneys will be willing to work out some type of payment plan to help meet your needs.  If they don’t, you also can file for bankruptcy.

When you are in financial trouble, bankruptcy might be the best solution for you.  Chances are, you probably have other debt that you owe.  Or you judgment is for an extremely high amount that you will never be able to pay back.

To save your assets and your income, you can file for bankruptcy.  Bankruptcy will discharge all of your unsecured debts, including judgments.  Once your bankruptcy is filed, creditors must stop taking any collection actions against you.  In fact, if they are in the middle of a lawsuit against you, that lawsuit must stop.  Additionally, If they obtain a judgment against you, they cannot use the options mentioned above to collect either.

There are two main types of consumer bankruptcy.  Depending on your situation, find out whether Chapter 7 or Chapter 13 is right for you.  You can also contact a bankruptcy attorney in your area.   Most bankruptcy attorneys offer free consultations to help you determine if bankruptcy is the right fit for your financial situation.