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Does filing bankruptcy erase a judgement?

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Quick Answer

Filing bankruptcy erases most judgments for dischargeable debts and lawsuit judgments, according to Nolo. However, nondischargeable debts do not erase a judgment and are not always relieved by bankruptcy.

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Full Answer

Most lawsuit judgments against bankruptcy debtors concern unpaid debts, such as failure to pay credit cards, medical bills or loans, notes AllLaw. If a creditor wins judgment, its recourse is to garnish wages and attach liens to personal assets of the debtor. Bankruptcy stops those remedies and wipes out any obligation to pay off discharged debts.

Some debts are not dischargeable through bankruptcy, including child support, alimony, some taxes, student loans and debts acquired by fraud, explains AllLaw. Even if the debtor successfully discharges a personal debt obligation, liens that were placed on a debtor’s property may survive bankruptcy protection.

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