There are three main types of bankruptcies that judgment debtors can file: Chapter 7, Chapter 11, and Chapter 13. Chapter 7 eliminates most unsecured debts without repayment, while Chapter 11 allows corporations to restructure debts. Chapter 13 requires individuals to repay a portion of debts through a payment plan over 3 to 5 years. The document provides details on each type of bankruptcy and how they could impact judgments from small claims or eviction court. It cautions that judgment debtors may claim bankruptcy to avoid collections, so creditors should wait for official confirmation before stopping collection efforts.

1. JUDGMENT DEBTOR FILES BANKRUPTCY
There are three principle types of bankruptcies to be used
by judgment debtors, Chapter 7, Chapter 11 and Chapter 13.
Individuals and most corporations can file for bankruptcy
relief under Chapters 7 and 11. Only individuals with income
may file a Chapter 13.
Chapter 7 is a liquidation bankruptcy that wipes out most of
the judgment debtor’s unsecured debts such as credit cards
and awarded judgments in the Small Claims and Eviction
court. When the judgment debtor files Chapter 7 there is no
need to pay back balances through a repayment plan.
When the judgment debtor files for Chapter 7, an order
called the automatic stay that immediately stops most
creditors from pursuing collection efforts Judgments
awarded in the Eviction and Small Claims court would stop.

2. Chapter 11 is a form of bankruptcy that involves a
reorganization of a judgment debtor's business affairs,
debts, and assets. Corporations generally file Chapter 11 if
they require time to restructure their debts. This version of
bankruptcy gives the debtor a fresh start. Chapter 11
Bankruptcy is the most expensive form of a bankruptcy
proceeding.
Corporations usually file Chapter 11 and some individuals
with a lot of debt, who do not qualify for Chapter 7 or 13,
may be eligible for Chapter 11. Judgments debtors in the
Eviction and Small Claims are not likely to file a Chapter 11.
Most rental agreements are residential with the judgment
debtors being individuals but if the agreement was in the
commercial property and the judgment was awarded against
a corporation in any of these courts then it could be an
option.
In Chapter 13 bankruptcy, the judgment debtor can keep all
of their property (including nonexempt assets but will have
to pay creditors an amount equal to the value of the
nonexempt property). In exchange, the judgment debtor will

3. pay back all or a portion of their debts through a repayment
plan (the amount to be paid back will depend on your
income, expenses, and type of debt). The judgment debtor
must make monthly payments to the Trustee for three to five
years and may have to pay back a portion of the general
unsecured debt.
I have collected on three judgments that was awarded in the
Eviction court with relief under Chapter 13.
Never believe the judgment debtor when he/she tells you
they are going bankrupt. This is a tactic used to get rid of
you chasing them. Keep going until you get the confirmation
thru the mail from the Trustee.
If you are in the Debtors Examination hearing and the
judgment debtor tells the Judge that they are going
bankrupt. Ask for confirmation or ask for a status hearing
where the judgment debtor can bring in confirmation.
Be sure to submit the needed documents needed in Chapter
13 to the Trustee and go to the hearing.