If you are being sued bankruptcy may be an option to consider. Chapter 7 bankruptcy allows for qualifying debt to be discharged while Chapter 13 bankruptcy restructures debt. A discharge means the debtor will not be obligated to pay toward the judgment. Many debtors have been able to get judgments discharged but it often depends on who and why the lawsuit was filed against you.
As a debtor, if you are being sued by a creditor for unpaid credit card debt , medical bills and other certain unsecured debts, it's likely your judgment will get discharged by the bankruptcy court. Keep in mind, some judgments may not receive a discharge; meaning the debtor will be responsible for paying the outstanding balance owed.
Judgment situations related to the following will most likely be non-dischargeable:
- Debt incurred from fraud or theft.
- Injuries obtained due to misconduct of the debtor.
- Obligations related to back child support or spousal support.
- Motor vehicle accident that resulted in injuries or death cause by debtor operating vehicle while intoxicated.
- Penalties, fines and restitution owed to a government entity.
While the above list is not complete, it gives a general idea of the most common types of judgments that may not obtain a discharge. Questions or concerns can be reviewed with an experienced bankruptcy attorney .