WHAT IF THE DEBTOR FILES BANKRUPTCY?
Your judgment can be legally discharged and your case closed. In some instances, if your judgment contains a court finding of fraud or the judgment was for an intentional tort, your claim can survive a bankruptcy. One must, however, move expeditiously in bankruptcy court to preserve creditors’ rights. If the debtor’s petition is fraudulent it can be challenged, and if the bankruptcy is “dismissed”, the debt may continue to be pursued. A bankruptcy “discharge”, however, is the death knell for most debts.
