Judgments

• Any creditor whom you owe money to can petition the court to get a judgment. A judgment would then allow the creditor to seek legal remedies to recover the money. A creditor with a judgment can not only garnish your wages or bank account but can place liens on property you own such as your home or your vehicle.
  
  

Bankruptcy

• Bankruptcy can and will halt all pending judgments. Bankruptcy will also stop any wage garnishments or future garnishments from your bank accounts. All legal collection efforts must cease during the bankruptcy proceedings. When you file your bankruptcy petition, an automatic stay is immediately put in place. This stay prevents collection efforts from that moment on.
  
  

Petition

• The bankruptcy petition must be filled out and include the information on any judgment you have or that is pending. You must list the creditor, the original account information, type of debt and approximate amount. This information will be included within the bankruptcy petition as well on as on the creditor matrix. The creditor matrix is the list of creditors who will receive notification of your bankruptcy. A creditor must be informed of your bankruptcy to be aware he must stop collection efforts. When the judge approves your bankruptcy, your judgments will no longer be valid.
  
  

Bankruptcy Limits on Judgments

• While a bankruptcy will stop a creditor from collecting on a judgment or obtaining a new judgment, it cannot erase a lien that may have been placed against property prior to the bankruptcy case. Contact an attorney who specializes in bankruptcy if you have a lien against property. In some cases, additional procedures can take place to help remove a lien while some liens are not removable. Judgments that are a result of owed child support or restitution are very unlikely to be removed.