When unfortunate individuals are not able to pay their bills, angry creditors sometime go as far as to get a judge to enforce a judgment known as wage garnishing. If you are, or have been, in the position of trying to juggle bills, the last thing you need is a reduction in your wages as that will only make your financial situation even more difficult to manage. Declaring personal bankruptcy may seem like the solution to all your problems but will bankruptcy stop a judgment?

A judgment is the court’s final decision as to whether you must make a payment or not, with the differences among the various types of judgments based on why the payment is owed. Bankruptcy will stop most civil judgments, but it is always best to consult a qualified bankruptcy attorney before filing your petition to ensure that your individual situation will allow your judgment to be stopped and any debts you owe to be discharged.

The first thing to happen when you file for personal bankruptcy under either Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code, is that an “automatic stay” will be put in place, protecting the debtor from any harassment. This includes most kinds of judgments that have been put in place, such as wage garnishing, as well as lawsuits. Creditors will not be able to file a new lawsuit against you, nor will they be able to continue pursuing an ongoing one. It is important to note that the automatic stay will not protect you from any criminal proceedings, civil violations, or government claims. It is designed as a way to alleviate some of your stresses while you deal with your bankruptcy process.

Debtors are most frequently worried about judgments such as wage garnishing, where up to 25% of pay checks are held at the request of a judge, then the money given to the creditor(s) who brought the petition to the court. But there are other types of judgments as well, such as a deficiency judgment that is placed on you if your house has been foreclosed on but the funds from the sale are not able to cover the remaining balance of the debt. Some judgments differentiate not because of the reason behind the payment owned, but due to the amount owed. For example, a civil judgment is if you owe a large amount of money and a small claims judgment that is for amounts less than $5,000.

If you are in the situation of wondering “Will bankruptcy stop a judgment?” you should be aware that although most types of judgments can be discharged under Chapter 7, it will not be possible for those gained as a result of fraud or any criminal or illegal activity. It is recommended to consult a qualified bankruptcy attorney prior to filing your petition for personal bankruptcy to learn whether the judgments against you will be waived under Chapter 7 or whether you should try to aim to have them reduced under Chapter 13.

To find out if bankruptcy is right for you, please fill out our free bankruptcy evaluation.