Lawsuits and Judgments in Bankruptcy

Does filing bankruptcy stop a lawsuit against you?

Yes, as a general rule. A petition filed under section 301, 302, or 303 operates as a stay, applicable to all entities, of "the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case" (11 U.S.C. § 362(a)(1)). The same subsection stays "the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case" (§ 362(a)(2)), and any act to collect a claim that arose before filing (§ 362(a)(6)).

This is automatic — it takes effect when the petition is filed, without a separate motion or hearing. One bankruptcy court explains to creditors that a lawsuit commenced before the bankruptcy case generally must stop unless the bankruptcy judge gives permission for it to continue, and that a creditor acting without a court order can be sanctioned, with the action taken possibly void (Bankr. D. Mass. official page — FAQs for Creditors).

• The stay reaches the lawsuit itself, the judgment, and collection activity on the underlying claim
• It applies to all entities, not only the creditor who sued you
• It arises from the filing itself, not from an order you have to request

What changes the answer for your situation?

Several things narrow or shorten the stay, and they are worth checking before you rely on it.

Repeat filings matter. One court's guidance states that if you filed for bankruptcy within the past year and that case was dismissed, the automatic stay may protect you only for 30 days after the new case is filed, and that if two or more cases were dismissed during the prior year the stay does not go into effect at all unless the court orders it after a hearing and a finding of good faith (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter). Local rules track this — a motion to continue or impose the stay must identify prior filings and address whether a previous case was dismissed after a failure to perform the acts in 11 U.S.C. § 362(c)(3)(C)(i)(II) (Texas Northern Local Bankruptcy Rules — revised December 1, 2025).

A creditor can also ask the court for relief from the stay for cause (§ 362(d)), and dismissal of your case ends the stay entirely.

What does federal law say about a judgment after discharge?

The stay is temporary; the discharge is what changes the judgment permanently. Under 11 U.S.C. § 524(a)(1), a discharge "voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged." Section 524(a)(2) then operates as an injunction against commencing or continuing an action, employing process, or acting to collect, recover or offset that debt as your personal liability.

Read those two together: for a discharged debt, the judgment loses its force against you personally, and the creditor is enjoined from pursuing it. Court guidance describes the discharge as a court order relieving you of the obligation to pay dischargeable debts, after which creditors are generally forbidden from making demands or filing suit on unsecured debt (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter).

The timing differs by chapter. In Chapter 7 the discharge is granted after the deadline for objections passes; in Chapter 13 it comes only after you complete all plan payments (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter).

• § 524(a)(1) voids the judgment as to your personal liability for a discharged debt
• § 524(a)(2) enjoins further collection on that debt
• The relief attaches to discharged debts — not to debts excepted from discharge under 11 U.S.C. § 523

Does the discharge remove a lien on your house or car?

This is the distinction people most often miss, and it is the one most worth understanding before you make a decision.

A discharge addresses personal liability. Court guidance is direct about the limit: "In all cases the discharge of the debt only relieves the debtor of personal liability for the debt; it does not eliminate any mortgage or security interest in the debtor's property that the debtor granted to a lender" (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter). Another court puts it the same way — the discharge does not prevent secured creditors from seizing collateral if payments are not kept up, and if a valid lien was not eliminated in the case, the creditor may have the right to enforce it against the property afterward (U.S. Bankr. Ct. M.D. Ala., Consumer Pro Se Debtors Guide).

So a judgment creditor who recorded a lien against real estate before you filed may still hold that lien after discharge unless something in the case addresses it. Whether a particular lien can be dealt with, and how, is exactly the kind of question to put to a bankruptcy attorney in your district.

• Personal liability and a recorded lien are two different things
• The stay bars acts to create, perfect or enforce a lien during the case (§ 362(a)(4)–(5))
• A lien surviving discharge is a common, and correctable-looking, surprise — ask about it early

Where do state and local rules differ?

The stay and the discharge are federal, and they read the same in every district. What varies is procedure and timing around them.

One example: if a lawsuit against you was pending when you filed, it can sometimes be moved into the bankruptcy court. A notice of removal is generally filed within the longest of 90 days after the order for relief, 30 days after entry of an order terminating a stay if the claim was stayed under § 362, or 30 days after a trustee qualifies in a Chapter 11 case (Bankr. M.D. Ga. official guidance — Clerk's Instructions (September 2025)). Local rules also set what a motion to continue or impose the stay must contain, and how quickly it must be served (Texas Northern Local Bankruptcy Rules — revised December 1, 2025).

Eviction is a live example of timing: one court warns that if a landlord obtained a judgment before you filed, the landlord may be able to continue with that eviction (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter). Check your own district's page for local practice.

• Federal: what the stay and discharge do
• Local: motion contents, service deadlines, removal timing, hearing practice
• Some state-law deadlines (a foreclosure sale, an eviction judgment) can pass before you file

What does this look like in practice?

A common sequence runs like this. A creditor sues. You do not respond in time, so a default judgment is entered. The creditor uses that judgment to garnish wages or reach a bank account. At that point the judgment is simply a money judgment — nothing about it having been entered by default changes how the Bankruptcy Code treats it.

If a bankruptcy case is then filed, § 362(a)(2) reaches enforcement of that pre-filing judgment, and § 362(a)(6) reaches acts to collect the underlying claim. The creditor's route is to file a proof of claim in the bankruptcy case rather than continue collecting, or to ask the court for relief from the stay; one court's creditor guidance describes exactly that substitution (Bankr. D. Mass. official page — FAQs for Creditors).

If you are the plaintiff in a lawsuit when you file, the picture flips: the trustee and court must be notified, and in Chapter 7 and 11 cases with a trustee, the trustee generally becomes the new plaintiff (Bankr. D. Mass. official page — FAQs for Creditors).

• A default judgment is treated as a judgment — the stay analysis is the same
• Creditors move from the state court to the claims process, or seek stay relief
• A lawsuit where you are the plaintiff is an asset of the case and must be disclosed

What documents and information should you gather?

Before a consultation, collect the paperwork that tells the story of each lawsuit and judgment. That usually means the summons and complaint, any judgment or default judgment, garnishment or levy notices, and anything recorded against your home. If a creditor is being paid through a court process, the notices from that process matter too.

Every creditor has to be listed. A debt "neither listed nor scheduled" in time to permit timely filing of a proof of claim can be excepted from discharge under 11 U.S.C. § 523(a)(3) — which is why an old judgment you have half-forgotten belongs on the list. Schedules and statements are submitted under penalty of perjury, and if something later turns out to be inaccurate or missing, it is corrected by filing an amendment; a fee applies to amend a creditor list (Bankr. W.D. Ky. official guidance — Guide to Filing Bankruptcy without an Attorney).

• Summons, complaint, and any entered judgment for each case
• Garnishment, levy, or execution notices, with dates
• Anything recorded against real estate — including a judgment lien
• Names and addresses for every creditor, including old judgment holders

What should you ask a bankruptcy lawyer?

The value of a consultation here is in the specifics — which of these rules bite in your case, and in your district. Filing costs are a fair thing to raise early: the Chapter 7 filing fee is $245 (28 U.S.C. § 1930(a)(1)(A), (f)(1)), plus a $78 administrative fee and a $15 trustee surcharge (Bankruptcy Court Miscellaneous Fee Schedule, Items 8 and 9). The Chapter 13 filing fee is $235 (28 U.S.C. § 1930(a)(1)(B)), plus the same $78 administrative fee. Court materials note that the statute permits installment payment for an individual, and that the Chapter 7 fee waiver is conditional.

Courts are clear that clerk's offices cannot give legal advice and that their pamphlets are not a substitute for advice specific to your situation (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter). Bring your questions to someone who can answer them for your case.

• Is the debt behind this judgment one that is commonly discharged, or excepted under § 523?
• Does a lien from this judgment attach to anything I own, and can it be addressed in the case?
• Have any of my prior filings shortened or defeated the stay in a new case?
• Is this creditor likely to seek relief from the stay, and what happens if they do?
• Which chapter fits my situation, and what is the total cost to file in this district?

Frequently asked questions

Does bankruptcy stop a wage garnishment?

Filing generally does, because the automatic stay reaches the enforcement of a pre-filing judgment against you and against property of the estate (11 U.S.C. § 362(a)(2)), as well as any act to collect a pre-filing claim (§ 362(a)(6)). A garnishment is an enforcement step on a judgment. Exceptions exist under § 362(b), and repeat filings can shorten or defeat the stay entirely.

Is a default judgment discharged in bankruptcy?

It is treated like any other judgment on the underlying debt. If that debt is discharged, the discharge voids the judgment to the extent it determines your personal liability (11 U.S.C. § 524(a)(1)) and enjoins further collection (§ 524(a)(2)). Whether the debt is dischargeable depends on 11 U.S.C. § 523, not on whether you appeared in the lawsuit.

Does the automatic stay stop a child support case?

No. Section 362(b)(2)(A) excepts civil actions to establish paternity, to establish or modify an order for domestic support obligations, and proceedings concerning child custody or visitation. One court's guidance states plainly that the stay does not protect you from most domestic relations proceedings and judgments (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter). Criminal actions are likewise excepted under § 362(b)(1).

What happens if a creditor keeps collecting after I file?

In many situations a creditor must obtain a court order granting relief from the automatic stay before acting against you or property of the estate. Court guidance for creditors states that a creditor who does not obtain such an order could be sanctioned, and that any action taken may be void (Bankr. D. Mass. official page — FAQs for Creditors). Tell your attorney and the court promptly.

Can a creditor ask the court to let the lawsuit continue?

Yes. A party in interest can move for relief from the stay, and a desire to let an action proceed to completion in another tribunal is among the causes courts have recognized (11 U.S.C. § 362, Historical and Revision Notes). Section 362(e) sets an expedited framework: thirty days after a request for relief as to property of the estate, the stay terminates as to that party unless the court orders otherwise.

What if my bankruptcy case is dismissed?

Dismissal ends the automatic stay, and creditors may begin collecting on debts that were not discharged before the dismissal; an order of dismissal does not itself free you from any debt (U.S. Bankr. Ct. M.D. Ala., Consumer Pro Se Debtors Guide). Dismissal also reinstates certain avoided transfers and voided liens and vacates related orders (11 U.S.C. § 349(b)).

Does filing protect someone who co-signed with me?

Chapter 13 includes a codebtor stay: after the order for relief, a creditor generally may not act or continue a civil action to collect a consumer debt of the debtor from an individual who is liable with the debtor or who secured that debt (11 U.S.C. § 1301(a)). Exceptions apply, and a creditor can seek relief from that stay under § 1301(c).

Sources

• 11 U.S.C. § 362 — Automatic stay · official source
• 11 U.S.C. § 524 — Effect of discharge · official source
• 11 U.S.C. § 523 — Exceptions to discharge · official source
• 11 U.S.C. § 349 — Effect of dismissal · official source
• 11 U.S.C. § 1301 — Stay of action against codebtor · official source
• U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter: What can Bankruptcy do for you? What will it do to you?
• U.S. Bankr. Ct. M.D. Ala., Consumer Pro Se Debtors Guide
• Bankr. D. Mass. official page — FAQs for Creditors
• Bankr. M.D. Ga. official guidance — Clerk's Instructions (September 2025)
• Texas Northern Local Bankruptcy Rules — revised December 1, 2025
• Bankr. W.D. Ky. official guidance — Guide to Filing Bankruptcy without an Attorney
• 28 U.S.C. § 1930(a)(1)(A), (f)(1)
• 28 U.S.C. § 1930(a)(1)(B)
• Bankruptcy Court Miscellaneous Fee Schedule, Item 8
• Bankruptcy Court Miscellaneous Fee Schedule, Item 9

Related

• The automatic stay
• Which debts get discharged
• Exemptions: what they protect
• Chapter 7
• Chapter 13
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