Winning a civil judgment is a significant achievement — but what if the debtor turns around and files for bankruptcy? For many judgment creditors, this development feels like a dead end. After all, bankruptcy is designed to protect debtors from collection and give them a fresh financial start. But that doesn’t always mean your judgment is gone for good.
In this article, we’ll explore what happens when a debtor files for bankruptcy after you’ve won a judgment, what types of debts may still be collectible, and how a judgment collection attorney can help you protect your rights during the bankruptcy process.
Bankruptcy Basics: The Automatic Stay
When a debtor files for bankruptcy — whether it’s Chapter 7, Chapter 13, or Chapter 11 — the court issues an automatic stay. This is a legal order that immediately halts all collection efforts, including:
- Wage garnishments
- Bank levies
- Property seizures
- Lawsuits
- Judgment enforcement
Violating the automatic stay can result in serious legal penalties, so creditors must stop all activity as soon as they learn of the bankruptcy filing.
At this point, you can no longer enforce your judgment through the usual methods. Instead, your options depend on several key factors, including the type of judgment, the debtor’s financial situation, and the chapter of bankruptcy filed.
Will the Judgment Be Discharged?
The big question most creditors ask is: Will the bankruptcy wipe out the judgment entirely?
The answer: It depends on the nature of the debt.
Most Debts Can Be Discharged
In a typical Chapter 7 case, most unsecured debts — like credit card balances, personal loans, and medical bills — are discharged. This means the debtor is no longer legally required to pay, and the creditor cannot collect.
If your judgment arises from a standard unpaid debt, and there are no special circumstances, it may be included in the discharge.
Some Judgments Cannot Be Discharged
However, not all debts are dischargeable. Bankruptcy law specifically excludes certain types of judgments from discharge, including:
- Debts incurred by fraud
- Judgments involving willful and malicious injury
- Debts related to embezzlement, larceny, or breach of fiduciary duty
- Judgments for DUI-related personal injury
- Domestic support obligations (child support, alimony)
If your judgment falls into one of these categories, you may be able to object to discharge and continue to collect the debt, even after the bankruptcy concludes.
Challenging the Discharge of a Judgment
If you believe your judgment is non-dischargeable, you must take legal action — and you need to do it quickly.
File an Adversary Proceeding
You’ll need to file an adversary proceeding within the bankruptcy case — essentially a lawsuit asking the court to declare that your judgment should not be discharged.
To succeed, you’ll need to present evidence that the debtor’s conduct meets one of the exceptions mentioned earlier (fraud, willful injury, etc.). The court will hold a hearing and decide whether to exclude the judgment from the discharge.
This is a complex process that requires clear documentation, legal arguments, and often witness testimony — which is why many creditors work with an experienced attorney for this step.
Can You Still Get Paid After Bankruptcy?
Even if a debt is discharged, you may still have options for recovery, depending on the debtor’s circumstances.
If the Debtor Has Non-Exempt Assets
In Chapter 7 bankruptcy, the trustee may liquidate non-exempt assets and use the proceeds to pay creditors. You’ll need to file a proof of claim to be included in the distribution. However, unsecured creditors often receive only pennies on the dollar — or nothing at all.
If the Debtor Files Chapter 13
In Chapter 13, the debtor proposes a repayment plan over 3–5 years. As a creditor, you may be entitled to regular payments as part of that plan. Again, filing a timely proof of claim is essential.
What If the Debtor Is Abusing the Bankruptcy System?
Some debtors file bankruptcy in bad faith, using it as a stalling tactic or to avoid a judgment they clearly have the means to pay. In extreme cases, you can:
- Challenge the bankruptcy itself for fraud or bad faith
- Request relief from the automatic stay to resume collection
- Seek dismissal of the bankruptcy case
These remedies are difficult to obtain but are possible in cases of clear abuse. An attorney can advise whether this route is viable for your case.
Why You Should Involve a Judgment Collection Attorney
Bankruptcy law is notoriously complex. Missing a deadline, filing the wrong motion, or misunderstanding the court’s procedures can cost you your chance to recover anything.
A judgment collection attorney can:
- Monitor bankruptcy filings and respond promptly
- File claims, motions, and adversary proceedings
- Assess whether your judgment may be non-dischargeable
- Challenge abuse or fraud in the bankruptcy process
- Maximize your chance of recovery, even in tough cases
Final Thoughts
A debtor’s bankruptcy filing doesn’t automatically mean your judgment is worthless. While many debts are discharged, certain types of judgments may still survive — and even in dischargeable cases, there may be opportunities to recover partial payment.
If you’ve received notice that a debtor has filed for bankruptcy, don’t assume your hands are tied. Consult with a judgment collection attorney to explore your legal options and protect your right to be paid. We recommend Judgement Collection Attorney.