How to Declare Bankruptcy After a Civil Suit Judgment

Filing for bankruptcy is a very effective strategy for gaining protection from a civil judgment. Civil judgments usually require the defendant to pay a certain amount of money to the party filing suit. If the defendant does not pay, the plaintiff -- such as a credit card company -- can request garnishment of the debtor's bank account or wages. All forms of bankruptcy prohibit garnishment and other debt collection efforts. However, bankruptcy severely harms a person's credit rating and can even disqualify people from consideration for certain kinds of jobs. There is at least one other strategy for dealing with a civil judgment that is less damaging to credit or future employment.

Instructions

1

Consult with several bankruptcy attorneys about your situation. The attorneys usually offer initial consultations for free, and visiting with two or three attorneys allows you to ask many questions.

2

Contact the debt collector to discuss options for paying the judgment. For example, a debt collector may agree to a payment plan and agree not to request garnishment, if you make payments as agreed.

3

Hire a bankruptcy attorney if you feel you must file for bankruptcy. Federal law allows people to apply for bankruptcy without the assistance of an attorney, but you should hire an attorney for the best results. Contact a local charity, such as the United Way, to ask about free resources for an attorney, if you cannot afford to pay. Organizations, such as the Legal Aid Society, may take your case for free if you qualify under income guidelines.

4

Visit a federal bankruptcy court in your area to obtain the proper paperwork if you choose to represent yourself in a bankruptcy. Call the public library to get the address for the bankruptcy court. Read instructions on the forms for filing for bankruptcy on your own. Fill out the paperwork and pay the current fee to file. The fee in 2011 was $274 for Chapter 13 bankruptcy and $299 for Chapter 7. Chapter 13 requires a payment plan lasting three to five years. Chapter 7 eliminates unsecured debts, such as court judgments, in three or four months.

5

Enter into an agreement with a bankruptcy attorney, as an alternative. Instruct the attorney to prepare the bankruptcy filing papers. Sign the paperwork to officially file for bankruptcy after a civil judgment.