Judgments · Beverly Hills
Judgment Debt and How Bankruptcy Handles It
Judgment debt is usually wiped out by bankruptcy, the same as the debt it came from, and filing stops collection right away. A judgment lien on your home may also be removed when it cuts into your homestead exemption. Call (310) 362-9071 and bring a copy of the judgment.
- California judgments can be enforced for 10 years and can be renewed
- Interest runs at 10% a year, or 5% on some consumer judgments
- A discharged judgment can no longer be collected from you
- A lien already recorded on your home may need a separate motion
At a glance
How a judgment follows you in California
A judgment can follow you for many years in California. Under Code of Civil Procedure section 683.020, a money judgment can be enforced for 10 years after it is entered. The creditor can apply to renew it any time before those 10 years run out, which keeps it alive for another period.
Interest keeps adding up. Most judgments earn 10% a year. Since January 1, 2023, judgments (or renewals) under $200,000 on medical expense claims, or under $50,000 on personal debt claims, earn 5% instead. Either way, an old judgment can grow well past the original debt.
With a judgment, a creditor can:
- Garnish your wages. See how to stop wage garnishment.
- Levy your bank account. California protects $2,325 per debtor in a deposit account automatically (effective July 1, 2026). See how to stop a bank levy.
- Record a lien against real estate you own, by recording an abstract of judgment with the county recorder.
How bankruptcy wipes out the debt
Bankruptcy wipes out most judgment debt because a judgment is just a court's ruling that you owe a debt. If the debt itself can be discharged, so can the judgment. Credit cards, medical bills, personal loans and repossession deficiencies usually can.
Here is how it works:
- Filing stops collection. The automatic stay halts garnishments, levies and other enforcement the moment you file.
- The discharge ends your liability. When your case ends, the discharge bars the creditor from ever collecting the debt from you personally.
- Liens are handled separately. A lien already recorded against your home is not erased by the discharge alone. It can stay attached to the property unless it is removed.
Removing a judgment lien from your home
Federal law lets you remove a judgment lien from your home when it cuts into your exemption. This is called lien avoidance, under 11 U.S.C. section 522(f). We file a motion with the bankruptcy court to do it.
The math compares three things: the judgment lien, all other liens like your mortgage, and the homestead exemption. If those add up to more than the home is worth, the lien impairs your exemption. It can be removed in whole or in part.
| Example | Amount |
|---|---|
| Home value | $1,300,000 |
| Mortgage | $700,000 |
| Homestead (Los Angeles County, 2026 estimate) | About $744,000 |
| Mortgage plus homestead | About $1,444,000, more than the home's value |
| Judgment lien | $60,000, fully avoidable in this example |
The homestead figures are estimates. The state does not publish the adjusted figure, so the 2026 range of about $372,000 to about $744,000 is based on the inflation formula. Los Angeles County is at the top amount because its median home price is far above the cap.
Judgments that may survive bankruptcy
Some judgments may survive bankruptcy because of what the underlying debt was. Watch for these:
- Fraud judgments. A judgment for fraud, embezzlement or willful and malicious injury may be kept alive if the creditor sues in the bankruptcy court within a short deadline. See adversary proceeding defense.
- Drunk driving injuries. Judgments for death or injury caused by driving while unlawfully intoxicated are not discharged.
- Support and fines. Child support, alimony and government fines are not discharged.
- A lien you never removed. If no motion is filed, a recorded lien can stay on the property and be paid when you sell or refinance.
What it costs
- Chapter 7: flat attorney fee from $1,200, plus the $338 court filing fee
- Chapter 13: attorney fee quoted in writing, and part of it can be paid through the plan
- Payment plans are available, and the first consultation is free
More on lawsuits and collections
Judgment debt questions
Can bankruptcy get rid of a judgment?
Yes, bankruptcy can get rid of a judgment if the debt behind it is dischargeable. Credit card, medical and personal loan judgments usually are. A lien on real estate may need a separate motion.
How long does a judgment last in California?
A judgment lasts 10 years in California and can be renewed before it expires. Interest keeps running the whole time, at 10% a year or 5% for some consumer judgments.
Can a creditor collect a judgment after my discharge?
No, a creditor cannot collect a discharged judgment from you after your discharge. A lien that was not removed can still stay attached to property you owned when you filed.
What if a judgment was entered because I did not answer the lawsuit?
A judgment entered because you did not answer the lawsuit, called a default judgment, is treated like any other judgment in bankruptcy. Read more in our guide to stopping creditor lawsuits.
Free consultation
Put an end to an old judgment
Call (310) 362-9071 or send the form. Bring the judgment and any levy or garnishment papers you received.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.