What happens to judgments after bankruptcy?
What happens to judgments after bankruptcy? Min Austria Assistant at Ascent Law LLC Bankruptcy does not eliminate judgments, however. Unpaid debts that have been declared insolvent may still be subject to judgments. These judgments can be from service vendors, credit card companies, or even car and mortgage lenders. Creditors can use judgments as leverage to garnish wages and take assets. Fortunately, bankruptcy provides strong tools for dealing with these debts. The most common way to protect your personal property is to pay off your judgment as soon as possible. However, this can be difficult. In some states, a judgment is a lien on your property. It attaches as a lien on all of the property you owned at the time of filing for bankruptcy. This means that if you sell a house or property, you might be unable to sell it for a profit. Luckily, there are some exemptions that allow you to protect your property during bankruptcy. A lawsuit can also result in a judgment. However, this does n...